No. The only way it works is if you copy save data from the Wii to your SD card first, then do the system transfer, then bring it back to the Wii and take it off the SD card.
Only certain game saves allow you to copy them, too - basically you can't copy anything with an online option. But I...
Yeah mine has a tiny black dot in the middle of the screen at the top. Thought it was a dead pixel but when you turn it sideways it looks like it's between the outer layer of the touchscreen. Not a big deal, but might see what Nintendo suggests. You gonna send yours back?