In the context of the Wii homebrew scene, a WAD file is essentially an installable archive format. While they are often used for digital distribution of games (Virtual Console/WiiWare), the format is also used by homebrew developers to distribute custom channels or forwarders.
Dolphin cannot directly output a WAD from a disc. However, you can: New Super Mario Bros Wii Wad File
Yes, using WAD2ISO or ShowMiiWads . This is useful for burning to a disc or using older USB loaders that don’t support WADs. In the context of the Wii homebrew scene,