> Gaming is the only area where I expect plugins have limited permissions.

It's pretty much the opposite. A lot of modding communities' security model is literally just to "trust the community."

Example: https://skylines.paradoxwikis.com/Modding_API

> The code in Mods for Cities: Skylines is not executed in a sandbox.

> While we trust the gaming community to know how to behave and not upload malicious mods that will intentionally cause damage to users, what is uploaded on the Workshop cannot be controlled.

> Like with any files acquired from the internet, caution is recommended when something looks very suspicious.

I think they meant games that specifically come with a sandboxed scripting layer. Otherwise, I agree that most mods are indeed just untrusted patches for a native executable or .NET assembly.

I guess the intent behind Cities Skylines's support for mods is just removing the need for a mod manager and enabling Steam Workshop support.