You can still use it for the Wii Shop Channel. It's been a while since I check the settings, but I'm pretty sure it only supports WEP and WPA and (perhaps) WPA2-AES. I think WPA2-TKIP and passcode is not supported, as I could see at the Apple support page, it requires a passcode to connect.
Well setting up your phone as a wifi hotspot is more down to your phone/mobile provider. The Wii internet settings menus are pretty straightforward: input the SSID for the hotspot, then the security password and you should be good to go, unless you're making it more secure with MAC address filtering or fixed IP addresses or whatever.
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Topic: How to connect to Wii via tethering?
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