Ok, I finally got to speak with a Nintendo admin about being unbanned (after a 3 day wait) and i managed to find out some some what useful information. But let me go back over the basics first:

1. The ban is permanent until it is removed by Nintendo (unless you somehow hack around it)
2. A customer service rep at Nintendo can not unban you and it will take a few days to speak with someone who can.
3. They are not rude to you. Very smooth process so you shouldn't be afraid to call (as i've seen from some posts)
4. They are perfectly aware about the HBC channel, but it is unconfirmed if the HAXX ticket is the main way of tracking down hackers.

I made it a point to talk to this admin and ask as many questions as possible. Thank thanks to my politeness i was able to get some small, but clearer answers.

The good news... HBC does NOT HAVE TO BE REMOVED! you can keep your HBC and not worry about getting banned again, if, and ONLY if you do not get caught hacking online again. Second ban is in fact permanent. So feel free to keep your emulators, hack offline etc without fear. You DO NOT have to reformat your Wii, actually the admin advised AGAINST reformatting. You do have to give them your MAC address which is obviously how they banned you to begin with.

I asked how they track down the hackers, and the admin did not mind telling me what he thought. Since he is not in charge of banning he didn't have all the details but this is what he said. Basically its a combination of automatic searching (their system tracks hackers down by some method) but the MAIN method of tracking down hackers was by Nintendo reps actually racing you and seeing it themselves. Knowing this makes it a little less appealing to hack online, seeing as how any "dad, mom, player" could be a Nintendo rep scouting for hackers. But here is THE BEST NEWS of my conversation....

PRIVATE ROOM HACKING IS ALLOWED!!!! I asked if offline hacking was ok, he said yes, i asked if private room hacking for those who do not mind the hacks is ok and he said "as long as you are not cheating in a room full of random people then Nintendo IS NOT CONCERNED" he also added that since he is a Nintendo admin he can not encourage ANY HBC usage, but ultimately Nintendo does not care about private races.

So, for those who don't want to risk being banned a second time in a WW, just gather some friends who do not care to race a hacker, start a PR and you can still get your hacking fix!!

But for real, just call Nintendo. Its easy, they have awesome waiting music and they have all been really cool about the situation.

This was the best news. Lol, but yeah, I don't mind hackers hacking with friends only or offline. Just the noobish ftw and even ftl hackers in worldwide etc.

I can understand you reluctance to believe me. If this helps AT ALL, i am a 26 year old married man who has been playing video games his whole life lol. I have absolutely nothing to gain by lying. As a matter of fact, i'm doing this to help out the younger kids who are trying crazy things to get around the ban that aren't necessary. I just want to help clarify some of the rumours going around.

Its a good thing u were unbanned. Have fun racing.

wait...so I could have raced some nintendo reps?
lol, wierd.
*is not a hacker*

Second most informative thread concerning 20102. Thank you.

That's good that you were unbanned. The only thing that sucks is 20102 affected not only the 4TW hackers, but the 4TL ones as well.

And when will the ban be removed without having to call? Cause I just can't seem to get a hold of them

Keep trying until you get through.