It probably won't be able to play GC games because the "family edition" removed support for it. So while I can see them making it even smaller... I don't really see a point. Maybe to save material costs while they ride the death out? :/ It's probably a fake rumour.
That's true. It might also be a surprise with perhaps two GC ports instead of four, and just a single memory card slot. Then again, I might be out to lunch. Of course, it would probably cannibalize their own sales if they made GameCube games available on the Wii U Virtual Console/eShop. Then again, how would we manage with controls? Even the Pro Controller doesn't line up with the GC controller unless you remap all the buttons to be inverse (analog on the top, buttons on the bottom).