Mods prolong the life of games... sure that if soase was without mods, i have certainly move away long time ago and buy some other games... space strategy game from a other publisher... well, pretty sure that i will have switch to a other game before entrenchment, diplomacy, rebellion was/will be released...
Mods are bad for other game from other publisher but they are good for the publisher of the game who can be modded...
Mods can be bad in the case of sequel who reduce the modding possibility... for example, supcom II who don't allow easy custom map... or Dragon Age II... in both case, a lot of people continue to use the previous release who allow modding...
In the case of soase, i am pretty sure that more of 5% of the customer are using mod... almost all major sci-fi show have a mod on soase ( babylon 5, star war, star trek, stargate, Halo, etc )...
In some case, mods can create new sales... for example, the is a mod called "Dawn of Victory" not yet released...
It is a total conversion mod and people are working on it for years... high quality mods like these can hit numerous computer/game magazine once released... and lead to a new increase in the sale rate of soase ( total conversion need the original game )...
At the money level, what is more interesting :
- make a game, sell 50000 copy... make a new game, sell 50000 copy... make a new game, etc... each "make" stage ask a lot of time and money for the devs...
- make a game, allow modding... each mod allow a few more sale and prolong the life of the game... at the end, over 2000000 million copy of sins sell with a original dev budget around 1.000.000$ ... as for modders, well, they work for free!!!
In some case, feedback and/or mods can be useful for the devs too and spare them some work... by example, a chunk of the TSOP mod was include in one of the official diplomacy patch... as today, the diplomacy.exe have become the more computer resource efficient version...