USB is likely to be faster, so higher bit rates are likely to work.
That's interesting about MPlayer CE. The performance problem in WiiMC is likely to I/O file handling code.
Based on tests I did there isn't a fundamental problem with the Wii CPU handling 567p video at low CRF. It can do it.
Honestly besides maybe anime which already has a low framerate to begin with and could benefit somewhere from a higher vertical resolution I didn't see much benefit to using 576p over 360p for videos, the amount of configurations and things that have to go right to get a 576p video to play smoothly and simultaneously look good on a stock Wii is a bit of a headache over a "one-size-fits-all" encoding solution.
Really, the fact that WiiMC-SS is one of the few homebrew apps that supports 576p is actually a good reason to bring back the image viewer too, as that's one of the few cases where the increased vertical resolution can actually be utilized to good effect without worrying about performance.












