Users of DIOS-MIOS should understand that GC USB loading is totally different from Wii USB loading. Wii games are using IOS calls to access DVD. So DVD emulators such as cIOS or SNEEK can easily "catch" all IOS calls and replace them by whatever they want. Wii game simple doesn't know that it uses USB instead of DVD.
With correct IOS emulation, you don't need to touch any single byte of game - this is very important thing!
GC games access DVD by writing bytes directly into DVD controller. Wii/GC architecture even doesn't provide any useful way to trap of memory access for hardware registers. It means, there is no way to intercept DVD access for emulation. What this dios-mios doing is heavily patching. Special loader tries to find all places in dol accessing DVD and injects commands to call dios-mios' DVD functions instead. I'm not sure why it also patches audio and mem-cards access - i didn't study code (and actually don't want with such hacky and bugy way), but it doesn't matter here. So, loader expects that all games have been compiled with the same SDK (or at least with SDK where DVD code is exactly the same) and the same compiler. Otherwise patcher will simply miss DVD function and game won't work.
As u can see, GC USB loading is completely different from Wii. It requires huge patching of game and thus have to be very complicated and understand all differences in games. Many games will require special patches and somebody has to disassemble all problematic games to find correct way to patch.
I
n short, if somebody is waiting for a stable dios-mios in the near future then it's better don't keep hope. It won't happen soon. This is the same dead-end approaching like it was with cIOS where everybody was waiting and waiting for IOS reloading bug and it wasn't fully fixed. And at the same time there was another way - SNEEK which had no such bug originally.
May be there is another way to emulate DVD in GC mode - i don't know yet.
Remember Skyfox proof-of-concept video? Actually, nothining has been changed from that time. We still have the same (well, with some corrections) code as on that POC video.
People, who bought WODE (including me) didn't spent money in-vain. It's still the best way to load GC from USB. So far, i have no problems with any GC game loaded by WODE.
P.S.: I hope, PS3 will be hacked more deep soon and we will get normal Wii and GC emulation there
I didn't explore Cell CPU (used in PS3) well, but so far it uses PowerPC commands. If it really so, then it means PS3 will need to emulate only Wii/GC hardware, not PPC CPU itself.