No it doesn't, it's perfectly feasible to give the game support of mods in such a way that a mod is not integrated in the game but a seperate component which uses an API to access certain parts of the game and registers itself with the game so the game calls it when needed. In such a case multiple mods could use that API at the same time without the need of compiling either the game or the mods.
It would still require compiling at least once, but I get your point.
The game'd pick the mods from a list of dll's to load on the fly for instance. I've already seen programmers implement the same interface differently for the same object in 2 dll's and be surprised when the QueryInterface returned something unexpected depending on the products that were installed by the customer...
Such an architecture would likely be a real pain to merge mods with. Should you want two mods which change the same thing (and it happens very often), you would have to recompile, and hope the sources are available. With python, you just need to edit a text file. You'd also have to see how, in which order/priority your dll's would be processed (if several interfaces implemented, if a hook to main loop function is offered...). I see no reason to open an api in C++ over python frankly. In Civ IV, FfH2 made use of C++ for mostly two reasons as far as I'm aware:
1) The python api was limited and didn't allow to do certain things
2) Getting faster performance, mostly by removing unused python hooks from the C++
It's funny that both goals were self-contradictory. Had there been more hooks, there wouldn't have been a need to add C++ code. The simple existence of hooks slowed down the game, and whether those hooks are python or C++, the added logic was enough to cause noticeable slowdowns.
I dream of a future where some modder is making an RPG with the Elemental engine.
This has been made in Civ IV. Actually, a scenario of Fall from Heaven II, the 144th KRAG, is a roguelike, with random map regeneration when you go up/downstairs. And the scenario was limited to python and xml changes only. The guy also made a Sudoku in Civ IV... This modder would probably have been unable to code his mods in C++ imo.