It depends on if your modchip supports dual layer disks if you want to try to play a retail DVD. If your chip does not support DL disks (and I don't know which ones do, although I know yaosm 1.8+ does) you can use this with any modchip on a single layer burnt DVD.
It is true, the dual layer disks will strain your laser. Cheaper and better to get a $30 DVD player rather than have to buy a new laser for your Wii in a few months if you watch a lot of videos on it.