I tend to use Steam for everything. Never lose CD's. just a case of reinstalling on new systems, basically it's really easy.
Modding is a [censored] tho. I play vanilla OB simply because applying mods to Steam OB is very hard, I think it's because the games aren't installed in the stand... ahh, to hell with it, if you're knowledgeable enough to comment you don't need me telling you why I think it doesn't work. In short, it just doesn't work.
Is there a way of getting mods to work on Steam versions? I would buy Skyrim on Steam if I knew I could install da mods. Otherwise I might be out there queueing like a gimp with the rest of you.
I'm having trouble understanding your post.
I am running over 150+ mods for my Steam install of Oblivion (including overhaul mods like OOO/MMM/Frans/FCOM/Duke Patricks, as well as OBGEv2, COBL, Qarl's 2048x2048 textures, etc.) and no problems whatsoever.
There are only 2 very tiny differences for using mods with Steam install:
(1) if you use Wrye Bash, you have to change the file path listings in bash_default.ini to the correct file paths using your text editor
(2) if you use the 4GB patch, you have to use the Steam version of the .dll file, which is all explained clearly in the readme
That's it, no other differences for installing mods if you have the Steam version.
If you're playing vanilla Oblivion, you are really missing out on some amazing mods!