Similar to resource packs, when you add a new server there will be an option to use server mod packs. You can choose to be prompted, to have them disabled, and to have them enabled. This will work by determining what mods the server is using and what tool it is using to run them (Forge, etc.), and installing that tool and the mods it is running into a folder named the server's ip, within the server-mod-packs folder.
TL;DR: Players can choose to automatically download any mods a server is running and use them on that server, similar to server resource packs.
1: Where would the mods be hosted? Hosting them on the server would increase it's network strain dramatically when new players join. If they're hosted offsite (or just at the modmakers site), then it may work. However, then it's not a whole lot different than a server owner just making a TechnicPack modpack and telling their players to use it.
1: VIRUSES! VIRUSES AHOY! Server resourcepacks can get by since they're only loading .png images and sound files, which (under normal circumstances) cannot hold viruses (well, they can, but they're not executed).
But a whole bunch of .jars that are executed by the client? Yeah, no. I'm sure it wouldn't be too big a problem, but that's a big risk. If someone hacked, say, a server as big as Hypixel, they could have their virus easily distributed and executed to thousands upon thousands of people very quickly.
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