I can't look up the link cause I'm at work, but someone has released a simple elf > dol converter. The next update of the homebrew channel should include elf compatability, but the fact is that dol files take up much less space than elf's, so why not just convert to dol and save the space?
Founding father of the Wiibrew Packgen.
About 2 noob posts away from going ape sh*t