There are almost 23,000 mods for oblivion on tesnexus. Assuming the 90% rule holds true, that's 2300 mods that aren't low quality. From here on in it gets very opinion-y, but both the morrowind and oblivion modding communities are still going strong, and I've played far, far more modded than I did vanilla, and enjoyed it a lot more. And yes, there are hundreds of bugs left in the 360 version of oblivion (You can look them up - try the unofficial patch changelog), just very few of them are game-breakers. That doesn't mean them being fixed isn't great. I know that I'll be playing Skyrim for years, even though I've never played it, and have no idea whether it'll be good, simply because I can shape it into being exactly the game that I want - because no matter how good a game bethesda make, they're not making it for me and me alone. Modders are.
what the heck are you talking about, I dont know of any bugs with my oblivion for my xbox360, I dont have live for my 360 nor have I ever, and I have never had a problem in oblivion tht I can remember and I still play it to this day, well over 500 hrs for sure with never a patch needed,... also never had a RROD that others have had, on the other hand with my pc I have had problems, some stemming from bad mods, to viruses, to just low memory, and after having it less then 2 yrs it was not able to play some games that came out for the xbox and playstation because I had to buy new windows vista or my graphics card shot to hell,.... modders I love em but most modders have high end machines that would blow most other comps away and they more comp savey then me, so they dont pay for software/hardware installation every time they need something new, or have to pay some1 else to figure out the problems they have so for my money it will always be console reliability. JMO