[zacmario]

So if I made a nsmbwii hack, how would I release it here?

[FAST6191]

People have done all sorts of things for wii patches. Wii isos are encrypted as standard so don't use a simple xdelta or bsdiff type patching method on those, if you do then you will likely be including a whole bunch of copyrighted code and your patch will be rejected.

Personally I suggest people target either the individual files and make end users extract them or the fully encrypted original isos. Trying to do for whatever flavour of compressed or rejigged WBFS is a nightmare for both you and the end users should they have a different type of iso.
As most of your users will be on windows you can include a batch file to make the patching easier, https://wit.wiimm.de/ is the common tool for command line wii iso bothering. http://wiki.tockdom.com/wiki/Wiimms_ISO_Tools has more.

There are people which use either hacks or loaders for their hacks, do it if you want or can but I don't think it is an option for you (smash brothers has an unpatchable hack built into it so some in that game modding scene use it) unless you want to chain it with a hack.

[zacmario]

I'm using riivolution and actual disc. Do you think it's ok to distribute the stage folder?

[FAST6191]

The whole point of patches is to avoid sharing copyrighted data. Unless all your stage folder is built completely from the ground up then no as it would include some of Nintendo's code. Also that would trouble not using riivolution.

Wii patching is annoying, welcome to it all.

[zacmario]

So I should make an iso and encrypt it?

[FAST6191]

That would also include copyrighted data.

I already covered the ways available to you. There is no reasonable way you can include a plain old patch like we do for all the other consoles to turn one ROM/ISO file into the one of choice that will make the maximum number of people happy and keep the lawyers off your back.

You either do the extract, patch and insert things via a script.
Or you just release patches for the files you need to alter.

If you wanted to also find a method for people to generate files for riivolution then that's OK too (though for the most part that is just the extract and patch things without the insert phase). That said if the plain files don't include any of the dev's code then you could release as files, but most hacks won't be that.