And iirc they shipped the upgrade on their tent pole first-party games so even if you didn't have your wii hooked up to the internet you could still take advantage of the updates.
Yes. I don't think I have ever been required to install an update, with the exception of the one a couple years ago when Nintendo EOLed some of the default channels.
I seem to remember that it downloaded (and maybe installed) some of these while the box was in standby mode, so rarely did I have to install one while waiting to play.