I quite agree. Back when I was modding Skyrim, I had a "Donate" button available on my mod pages. Considering the amount of time that I spent working on the mods, I didn't make as much money as I would have with a real job. However, I made a decent amount, and the donations were very encouraging to my work.
Aye, that is certainly an issue. Mostly it is solved by simple etiquette, and website admins that will ban for uploading mods with stolen content. I hosted most of my mods on Nexus Mods, and I never had a problem with anyone stealing my content or getting approval from another modder to use their work with attribution.