What kind of mods?
I love my psp which is very similar so I don't know, I'd feel as if I were cheating by getting a 360, but it's still the more logical choice in my opinion. Well, except for the free online gaming part. That owns.
You can DL movies, music and games for your PSP via the PS3.
Every ps1 game is available.
If you pay for a DL, you can DL it 5 times. So get some friends together, the first person pay's to DL and then log's in to other people PS3 using the first person's log in and account, then DL 's it to the second person's PS3 and so on.
You can share the cost and it's legal.