Can't you make a mod on the PC that will break the game (or at least an individual save if you save with it on, but then you can start a new one without the mod active anyway)? And hell, even in Vanilla Oblivion, you can get stuck somewhere and save and your game is broken. So what's the difference? Mods are something you have to think about before adding them to the game and using them. And if mods are completely incompatible, they might cause your game to crash or something, so what? Restart the console, deselect the mod and run the game again, living without it.
Except this mod overwrote one of the models from another mod, and one of the textures from a different mod, and overwrote a .esp to provide compatibility - the second mod was already a texture replacer, but it also uses a .esp to make other changes. What do you do when you deselect a mod? How do you manage this? What if you wanted to remove the second mod, not the mod you just added? How about if the real reason this new mod is incompatible is because it's overwriting a levelled list, something a tool like Wrye Bash could fix?
It's not a straightforward, or simple system. "Deselect the mod" has a hell of a lot of baggage. It works on PC because we can manage it however the hell we like, but with no filesystem access, limited storage, and highly limited resources, that's almost never going to happen. A tool like Wrye Bash, for example, can take up colossal amounts of RAM when it's in the middle of doing its thing.