[quote name='dallow']
The problem is the max controllers the Wii allows for.
PS3 can only have 7 wireless controllers playing at a time.
[/QUOTE]
That's a limitation of bluetooth. Not a limitation of the Wii or the PS3.
I have heard, though, that you can daisy chain bluetooth devices, and each device could have 7 controllers attached to it.
In other words, you'd have, say, 4 Wiimotes syncing to the system itself. Then you have a "hub" that connects to the Wii. You can connect 4 more Wiimotes to that hub.
So 8 controllers.
Besides, you could also have 4 people playing with Wiimotes, and another 4 using the GC ports.
It's all possible, but I doubt it'll happen. I think of Smash as being hectic enough with 4 people on screen.
I do, however, think an 8 man tag team match would be beyond delicious.