The thread entitled Don't update to 4.2 should be a massive clue.
4.2 is a anti-homebrew, anti-modchip update released by Nintendo with NO features of any use. Updating to 4.2 will remove your drivekey's foreign region capability. Upgrading to 4.2 makes softmodding much harder.
Don't do it.
Internet and Shopping channels can be installed to your Wii manually by wad once you are softmodded.
Playing games online is not System Menu dependent. Loads of people still use 3.2 and play online.
Leave the modchip in, it's useful for Gamecube backup games.
Follow Dogeggs 3.1-4.1 softmod guide, find it in Tutorials. Be happy. Stay away from 4.2, it's not worth the hassle at the moment and probably never will be.