Yes, we have talked about adding mods, but at this moment in time we have decided to keep the server as Vanilla as possible, mods can be unreliable, and having them would decrease server population and growth due to the fact that people need to go to steam and download them to join, it's possible if they add in a auto download option for mods when joining a server, that we may consider using mods in the future.
The game is still pretty new, so I am sure in time Two handed weapons, being able to block with swords etc will be added in, and many other things.
Its said that a new race will be added, that being the "wizard" and also new siege Towers and weapons etc are expected to be coming also!