As for the Blizzard protects its game files thing.

They also have to abide by GDPR and cannot scan your machine with any intrusive software either as they're an Internationally trading company, Blizzard chooses to support mods namely because they knew it would be a fruitless endeavour years ago.

Namely around CoD MW2 when Activision removed dedicated servers from PC in order to control map packs and mod making themselves to generate revenue via DLC for them.

Guess what the modders did? They hacked into the P2P host and modded via making themselves host, extremely illegal, yes, but it was a shot across the bow of Activision for trying to force profit from something the modding community had been offering for free in the earlier CoDs.

ActiBlizz at that point quickly realized they needed to play ball with modders if they wanted to make money off map packs and DLC

Ever since that first crazy week, they supported the modding community.

Now that said.

If any mod (and there are some) is made to profit from SEs property

That, that is an infringement of intellectual property and those people should be delt with 1000%

But that's why things need to be handled case by case, not trying to blanket ban because a lot of the modding community do damn fine work for a product they love, they don't do it for profit, it's entirely out of passion

And just because you don't like that, they should take it away?

If SE ever paid a blind bit of attention to that kind of thinking, this game would not have grown

It would be sat somewhere around the bottom of Steam chart activity because believe it or not

Modders are whales, they dump ungodly sums into subscriptions, mogstation and so on constantly.

They keep the lights on when you're not here.

Food for thought.