They have done the Punchout special thing so it can be done but for some games it would be hard. A hard drive isn't necessary but it won't work unless they allow direct from SD card play and/or restrict the size of the demos. If I have to delete everything on my Wii to play a 250MB demo its really not worth the effort. If they start getting serious with this then they really need to create a demo channel or at least make a space for all of them in the Wii Shop or Nintendo Channel.
Now THAT is an idea!
But I have mixed feelings on demos. Some of my PS3/360 owning friends have been turned off to some pretty great games simply because the demo wasn't very good. In some cases it could backfire.
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Topic: Should we get demos of retail Wii games as well?
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