Is modding under attack?

One of the more bolt statements I made about underground gaming is that modding is somewhat under attack by the gaming industry.

I have received different reactions to this: Some agree, stating that modding is incompatible with the modern, usually centralized server structure of multimedia player games, agreed that my idea that the orientation towards professional competitive gaming lead to a stronger orientation towards standardization, or added that modding is incompatible to micro-transactions for skins or similar visual features.

Others told me that the modding scene is still active, but more restricted to specialized titles. Another reply that I received is that there is less a need for total conversion mods as there are more different games available, reducing the need to play "improvised" games.

Checking on ModDB, I noticed that there are few games among the popular or recent mods that are from after 2020; most of the popular targets for modding seem to be ancient for video game standards - I see this as evidence towards my point.

Would you agree that modding is declining within the modern gaming scene? I would be especially interested in hearing active modders about this, and what they would wish regarding their activity.