Wow. People are really upset, huh? I agree that it sucks if we can't play transferred VC games on the tablet, but don't see how that news is surprising.
It makes a lot of sense that transferred games would play in Wii-compatibility mode instead of being completely converted to Wii U versions. Each VC game you buy has the full emulator code included in the download, and those emulators are designed and tested to work with Wii. When you transfer games over, how do you think they will be magically updated to work with Wii U?
Hopefully people will be given the chance to upgrade their existing VC games to improved Wii U versions at no cost some day... but I wouldn't hold my breath. You purchased a Wii Virtual Console game, and now you own a Wii Virtual Console game. End of story. Dumb decision by Nintendo? Sure... but I can't see the cost of having every existing Virtual Console game updated to Wii U versions and QA approved by launch making any sense from a business perspective, even if I would kill to have my VC games playable on the tablet. Frankly I'm glad we are given the option to transfer at all, since there was some serious doubt about that initially.
The interesting question to me is what Nintendo will do when Wii U Virtual Console starts rolling and they re-release the same old games. Will they be treated as something completely separate from the Wii version, and people will have to re-buy to take advantage of the new features? Will both versions continue to exist and be available for purchase? Will the new one replace the older version, and if so what happens to people who still own Wii consoles and want to re-download an old game? I have my guesses (all based on what makes the most business sense for Nintendo) but will wait and see how things play out.