Now, if someone re-uploaded a mod that violated the license, what would happen?
Wube would obviously remove the mod and maybe remove the offenders ability to publish mods on Wube's platform.
Optera could sue, and given how anal some artists are about all this copyright / intellectual property stuff, that actually is a real risk if the offender is in a western bloc country actually giving a shit.
This whole licensing policy in the context of game mods is just a laugh, to be honest
Yes, it is a bit absurd given that they all not only stand on the shoulders of giants, but also on Factorio itself for their mod to make any sense.
In the end, if someone would want to copy the mod, the legally safe way to do it would be to look closely at the code and rewrite it, redo all art and publish under a different name with different texts. This is how the software industry does copyright evasion every day. You can't protect the idea of LTN, just the specific implementation.