1) don't update until after the tournament maybe?
Maybe.
How long before a tournament do you wait?
It depends on how long the homebrew folks take to crack whichever latest encryption or lockdown Nintendo creates.
So far it's been same-day stuff. One of these days, if Nintendo cares enough to put some effort into locking down their code, it might be more. It's an arms race. Remember, people who don't install the upgrade can be locked out of whatever online Nintendo services Nintendo wants to lock them out of... perhaps fine if the only thing you use your Wii for is to play Brawl, but what about those who aren't using their console for just one game?
Nintendo is ACTIVELY trying to prevent these sorts of hacks from being possible. For now, the homebrew community has been quick about things. But until this is actually endorsed by Nintendo rather than being a fight *against* Nintendo, I don't expect many to want to use it.
From the Homebrew FAQ itself:
" What if the next Wii update patches the Twilight Hack?
The System Menu 3.3 Update tried to patch this bug by deleting the Twilight Hack savegame and preventing it from being copied from an SD card into the internal storage. Flaws in the implementation of those checks allowed the Twilight Hack to work around it, but we expect that the next update will do a better job of blocking the Twilight Hack.
Work is underway to find a hack in a new game, but we will not release it until the Twilight Hack stops working. "
Way to instill some confidence in the fact that this will continue to be possible. And, heck, maybe it will.
2) ehm if the tournament doesn't clearly state what codes are used it is a bad tournament. period.
Of course. But stating it won't make it any less frustrating for players trying to get into the tournament scene - to play tournament-rules at home, they now have to obtain Twilight Princess, download code from somewhere on the internet (that's safe, that's not going to mess up your wii at all, really! Just trust us, we're on the internet and say so!), and hack their wii. You really expect that to catch on? Just to give people playing Pokemon Trainer more options?
3) THEY ARE LEGAL >_>
who the hell would you sue anyway, the hosts of the tournament? that would only mean no BIG tournament might be organised
Legal? Maybe. I googled for it and didn't find any decisive answer, either re: homebrew or re: specifically modding Brawl. Regardless, even the mixed messages mean that no BIG tournament would have it, meaning that the top players who play in the BIG tournaments won't bother with it, meaning that the people who WANT to be top players won't bother with it... ...and you're left with most of the community not being in favor, as is the case right now.
I don't expect hacking a wii to be a reasonable alternative for as long as Nintendo discourages it. If Nintendo released some official way to modify Brawl, or, heck, even condoned the existing homebrew methods rather than making attempts to thwart them with each update, then maybe; but not before then.