The WiiU does not support Wii software... yes you've read that right, the Vwii launcher does not work on any real Wii because the executable is in WiiU format, it's "just" that
1- there are some compatibility layers for Wii software (BC-WFS and BC-NAND)
2- the hardware can be switched into backwards compatible mode
which is somewhat like, but different, PS1 mode on PS2
Yes, virtualized if you like (a VM does not emulate a processor by definition, but traditionally emulates everything else)
They're encrypted and that file is part of the DRM, you can see that psx2psp can't convert thise back to a standard disc image but you have to use a different program to do that;
and the reason the PS2/P are so widely hacked (you have easy programs to sign titles to use even without CFW, you have FMCB) starts with $ony trying to scam buyers by retroactively removing OtherOS...
Errr a bit off topic but compatibility is not 100%, if the game uses CDDA audio try the cdda-enabler plugin or a better converter that supports the official ATRAC3 audio format, also try using a different version of POPS (there's a plugin for that)
When something breaks, because the emulator is not compatible enough (compatible is a lower standard than accurate, which includes things you can't see or hear) you will notice it
AFAIK yes, the coprocessor is used of course, but not in the same way
Officially it only exists on very few fat PS2s - you got it from PSBBN which requires HDD, if you wanted to download a very cut down demo of a PS1 game that is...
Also it's not clear what "without ps1 cpu" means, I understand you're thinking of the 75+ series with a PowerPC coprocessor called Deckard, but it's believed (not sure if it's been proven yet) that inside is additionally a MIPS processor anyway!
No, not officially, PS1DRV (in rom) is for discs and POPS (part of a digital game) is for... a digital game (singular, only 1!)