Unless people edited their posts, I have, in the life of this thread, seen multiple claims that it's true (one or two echos from IRC), and even more than one discussion on the obfuscation, including theories on how the .dvv files are created versus timestamps, and one person even talking about the ARM assembly and how it's obfuscated to the point that they can't figure it out easily along with either a screenshot or a text copy of a chunk of it (and I think an echo'd note from the dev about how it's specifically crafted to not run in Dolphin so people couldn't just use the debugging and memory reading tools in it to grab the important parts).
The exact order of those events of course is not as I put them, because this thread is 70+ pages and a year old. I'm not willing to dig through them very far (but that's because I don't care enough to as nobody posted exact info on how it was cracked).
ARM? Wii's built on PPC.