I modded it almost from the beginning (I played the GotY edition so there were already many mods around), but not for cheating, I was in need to the things it was lacking in playability, mood and graphic.
For example I didn't like so much the graphic from the beginning, not the world but mostly how dumbed down were the people... in Daggerfall they were 2D sprites but they had a better look !! So I installed all the graphic enhancements I found (yeah, nude too), and it became awesome.
Then I added "Living cities of Vvanderfell" (if I remember the name), that made every NPC go to home at night and work at day, and actually it made the game more difficult when there was the need to search for someone, but I liked it, it was more real.
Another thing I REALLY needed and the game was badly lacking was the "Marksman mod" (again, if I remember it's name), because, as an archer, I had to go around with like 200 arrows that were heavy and completely lost at EVERY use and not easily replaceable !!
So, what did this mod was to add a very high probability to find the arrows that hit the enemy (not the ones who missed), inside it's carcass.
Also, it added "wood" ingredient to actually create arrows by hands !!
(When I finished the game I also tried another GREAT mod that made you create with alchemy ingredients almost every type of arrows, from the poisoned to the explosive ones, and some were also doing area damage, if I knew this before maybe I could have used it

but maybe this could have been a little unbalanced

)
Some others mods were just bug fixing for rings or magic armors that were never patched from the official team.