If the game freezes it is either a bad iso, or a bad burn, or bad media.
Burning 1-4x with verbatim dvd-r using imgburn is the gold standard.
I am not convinced that your system ios and menu install caused this trouble from a lack of key.bin. Your wii was corrupted prior to that from the description in your first post.
I think you should load HBC-Loader.zip once you get to data management. Then from HBC, load Wad-Manager-1.4.zip and with ios249 install-
Then exit to HBC
Install priiloader v0.3b
If your still courupt after that, it is unrealated to your system menu. Perhaps try the mail brick fix for good measure, since your brick resembles it in its unexplained suddeness.