I installed this mod because the prospect of losing an entire set of enchants was silly to me. At the same time, I had installed another mod that slightly increased the amount of god from selling items. Furthermore, I looked for a mod that would auto-loot (and found it wasn't possible). I've since uninstalled the two mods mentioned.
1. This mod removes penalties for enchanting. The only limit then is the limit of enchants on an item, and the gold required to enchant said item. Therefore, the goal is to collect as much gold as possible to throw as many enchants as possible on to a weapon or armor piece so they can keep up with the increasing mob difficulty.
2. Mods that increase the amount of gold per item sold decrease the amount of time spent collecting gold. An auto-loot mod would simplify this even better (and actually, of all the mods, that's one I would support the most -- Dungeon Siege 2 worked wonderfully with its Z or X key to auto-loot everything).
3. It seems like then that the combination of these mods do one thing: drive you to obtain more gold so you can put more enchants onto an item. This seems to address the issue of item scaling, which is a legit concern, and the issue of auto-looting (some people go so far as to have mods that remove white items from dropping).
4. But then I asked myself... if that's all I really care about, why shouldn't I just use the console to GIVE myself gold? If all I want is more gold to enchant an item, without the possibility of having those enchants removed, then I think that takes away from the fun of the game.
Now, I do agree that having an items stats wiped is pretty silly. Yet, after I uninstalled the mod and went to see the disenchant chance on some of the items I had enchanted, I saw that a few of them were 25-28% disenchant chance. I basically felt like I had cheated (I mean, I had, more or less). At the same time, the mod is trying to address a legit problem, just like SkillLeech mod does (to make abilities like Devastate and Slash Attack work with health drain). I mean, I use that mod, and I don't feel like I'm cheating, because I think that mod is actually -balancing- the game. I feel like it's a bug that these abilities don't work with health drains, because without health drains, it gets to be almost impossible.
I've played on both sides of the fence though. I play World of Warcraft, where epic items don't change, they don't lose their stats. Content is scaled around gear (and vice versa). However, the content difficulty also doesn't change by itself, therefore, the hardest encounters offer gear for that content. The items also stay forever. Once you have it, you have it for good.
I also played a game called Medievia. There, the items would 'tweak' when they were loaded onto the NPCs. Items would have a base and would change off it, for better or worse. The base might be 30 health, 30 mana, but the item could tweak 25/25, or 35/35, or 20/40, etc. It was much harder for an item to tweak extremely higher (or low) than it was to tweak closer to the base. Items here also have base amount of days on them. They'd start at 185 days duration. Once they hit 0, if the item was above base stats, it would revert back to base. You could 'extend' the duration of the item though, up to 12 times. Once you'd hit 12 extensions, you could remove an egging (an egging was used to add 45 days, up to 12 times), to add another one. However, the closer to 12 extensions, the more chance of the item breaking. (And you could only remove eggings from items that had been egged 12 times, or maybe it was 10-12 times, don't really remember.)
Torchlight needs some kind of happy medium. One problem is that, because of enchanting, let's say you get a great weapon early on, and a better weapon drops. However, because you've enchanted the first weapon so many times, the second one (even though its base stats are better, and it is actually a better weapon) is useless. On the flip side, let's say you put a max of 5 enchants on an item. What if those 5 enchants are worthless? They might do nothing for you.
Maybe that's the point of endless dungeon though -- to see how far you can get with the 'best' weapons the game offers, and if you want to risk enchanting things, so be it. Generally though, I think the penalty for continually risking an enchant needs to be something more than, "Well, it costs more and more gold." That's not really a deterrence.
For similar reasons, the chance of not enchanting isn't a deterrence either, because there is no real penalty, except gold (which is time, or mods, or cheats). I think a more fair system would be something like this:
1. First enchant - 100% success rate - 100% gold cost (relative to whatever the base cost is)
2. Second enchant - 95% success rate, 5% fail rate (no enchant) - 110% cost
3. Third enchant - 90% success rate, 10% fail rate - 120% cost
4. Fourth enchant - 85% success rate, 15% fail rate - 130% cost
5. Fifth enchant - 80% success rate, 20% fail rate - 140% cost
6. Sixth enchant - 75% success rate, 25% fail rate - 150% cost, and an additional 10% chance that you won't be able to add any more enchants (regardless of whether this enchant worked)
7. Seventh enchant - 70% success rate, 30% fail rate - 160% cost, 20% chance to limit any further enchants
8. Eighth enchant - 65% success, 35% fail, 170% cost, 40% limit chance
9. Ninth enchant - 60% success, 40% fail, 180% cost, 60% limit chance
10. Tenth enchant - 55% success, 45% fail, 190% cost, 80% limit chance
11. Eleventh enchant - 50% success, 50% fail, 200% cost, 100% limit chance (in this case, you have a 50% chance to get an eleventh enchant, and a 100% chance to make the max enchants for this item 10, meaning if you failed the enchant, you're stuck at 10 enchants).