No offence but it seems people are stomping their feet and demanding free stuff.
Something free should always be considered a gift not something that is compulsory or demanded.
It doesnt matter what engine you use to achieve a goal as they are all tools to create the same thing you have in your mind, the only issue is the copyrights with the engine owner. I hope that the Divinity Engine will someone follow the model of bigger game engines and release some sort of royalty agreement as I think both Larian and Content Creators deserve something in return for their great works.
Also no it wouldn't kill the modding community, people won't be incline to buy every single mod out there and not everyone will want money for their basic work, Only the most successful and popular mods could get away with it, and they should get something in return.
I suppose building games and content isn't actually work though heh? So I don't see why you happen to buy Divinity in the first place. Really if you want be CHEAPSKATES then fine just don't demand that everything should be free, just like in the real world, if you can't afford something then don't buy it.
Good luck to the modders that are pumping out good content for this community which demands things be free, as if their work is some sort of charity for good cause, because you know gamers need charity especially when they paid $40 for a game and think all future works are entitled to be free.
Warcraft 3 had a similar game engine, and most mods were god damn awful, the only one that had any sort of success was DOTA, which quickly became copied by other studios as a standalone game and surpassed the original mod, so I doubt you guys actually know what's really good for the community.
If you like something then buy it and support it, thats always been the rule.