That... is really ugly. Seriously, it looks like it's made out of rubber. Why would anyone want this? @_@ I don't look at that and thing "Wii"; I don't even look at it and thing "Nintendo". It's just such an odd design. I have no idea what they were thinking.
I think the stripped down features bother me less than the design. :P I mean, the lack of backwards compatibility is probably the only feature dealbreaker for me and that doesn't surprise me because I don't think Wiis have been backwards compatible since the black one came out. (Or somewhere in there they dropped it, anyway.) The online capabilities of the Wii are kind of laughable. All you'd be missing out on is WiiWare/VC and that's not too big a deal. If you're skimping and going for the $100 version of the console, you're probably not interested in buying overpriced old games and indie games that are mostly cheap on PC anyway. The SD card thing is a little baffling to me though because it's not like it wouldn't be cheap to include the slot but internal storage is probably more than enough if you aren't downloading games/channels for the Wii.