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Wouldn't be nuts if a bunch of users on on this site and TTLG formed a game studio and and made "System Shock 3" (emphesis on quotations)
None of us mod by modifying the engine. The closest anyone comes to that is writing custom script modules, but with the integration of Squirrel, that's much less necessary now.
NDS do have some source code, but they are very secretive about it. and if ND suddenly disappears just like it appeared, well, we'll cross that bridge when we get to it.
That was already tried about 10 years ago. It was called "Sapphire Scar". It failed.