Is there still a lot of this going on in this game? Was thinking of coming back and checking it out, but I feel like there is no use if it's still not being policed. I had quit around the time the very first DLC came out.

I bought this game like a week ago and havn't had one issue with modding or hacking.

well i think you can still find many hackers, just be careful before you buy something

on open you'll find lots of hackers
ranked, very rarely

So have they actually done something to police the hacking? Anyone and just about everyone could easily mod items. I just want to know how rampant the modding still is because they didn't do anything previously.

Also... what DLCs should be bought? I haven't bought any of them and I know you don't "need" to buy them, but I just wasn't sure what would make the gaming experience more enjoyable.

yes they actively ban hackers now there's even a report function
all the DLCs are a must buy if you want the achievements & end-game stuff (lv 80+)

you should wait until there is a sale however..
the DLCs package is $49.99 but on sale it's ONLY $11.49.