Since on the menu it says Texture packs and mods I think you should be able to drag the mods folder in the folder for the mods and texture pack and you would have your mods
Notch said something about a TexPack and Mod API that would be able to work with Mods without the need of dragging and dropping them into the Jar or worrying about conflicts. Here I think.
Now go away.
All the more reason. No excuse.