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It depends on who makes the WAD games. If it is made by a Homebrew developer than chances are it's a free game, but if it's made by say, Nintendo or Sega for example, then it would be a paid app you should get via the Shop Channel. Obtaining a paid app for free would constitute piracy.
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WADs are components to be installed. The modding process to install cIOSs, IOSs, and channels are WAD files that the WAD manager "installs".
Any games that are installed from a WAD are usually pirated WiiWare/Virtual Console games that should be bought from Wii Shop Channel, though some "freeware/homebrew" apps may be distributed this way, maybe. You would usually just get the "boot.dol" file and launch those from HBC.
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