The major benefit to the VSE mods over the stock SCD-1 are:
Much greater musicality, by this I mean the music sounds more like real/live music does. There's a naturalness to the dynamics and astonishing inner detail without adding glare, grain, brightness or any other artifacts often associated with equipment that is more "revealing".
The modified player has much better "focus" than the stock unit, by this I mean that instruments and voices are better located in the soundstage, but also, seem to have more of that palpable "alive" quality that separates average gear from top-tier components.
The mods do not sound "tube-like" but neither do they sound like typical solid-state electronics. They allow the SCD-1 to sound very neutral without any sterility or coldness.
By comparison, the stock circuit sounds "electronic", having a very fine but audible "grain" in the upper midrange, and far less contrast between low to middle dynamics. This tends to hide inner detail and rob the music of much of its "life". On my previous speakers much of this was not audible, the SCD-1 was substantially better than the Marantz CD player it replaced, and when I bought it in 2000, I was very impressed with the sound of the SACDs I purchased.
I have to stress that the VSE modified unit improves redbook CD playback more than it does SACD, not that SACD isn't markedly improved, but many marginally listenable CDs are rendered quite enjoyable when listened to through Allen's circuitry. This is accomplished while showing MORE information that's on them, not less.
Considering the price of the modifications and the price of the SCD-1 coupled with the long-term enjoyment I've gotten from the player, I think it has been a bargain.
What player are you considering to be modified? I understand that each of the VSE modified Sony models has a slightly different sonic 'signature', but I haven't actually heard this for myself.
BTW, I thoroughly agree with your assessment of Bill Thalman, I've known him for years and he's always done top-notch technical work, whether it was repairing gear, managing the production at Conrad-Johnson for nearly 20 years, or his work at Music Technologies.