Mods aren't sanctioned because of the more "risque" applications that could potentially cause harm to the image of the game. Nothing more.
I can already turn spell effects to limited or completely off if I want to. Those are "part of the world" like people's glamours are. Is that having "God mode"?
I can also limit or remove people's names on my HUD if I wanted. To some people their character's name is just as important to that character as their appearance. Is removing their names from what I see somehow harming their experience? No.