Yes, you can use the UOP and OBSE with steam. I think there may be a different executable involved for OBSE, but it should be detailed in the readme. It was D2D, not Steam, that made OBSE break, as they changed the main .exe too much.
It may even be possible to disconnect Oblivion from Steam once it's installed. You're not going to get any more patches for the game, so that part of the "service" isn't relevant.
Don't you still have all the zips, 7z's and other archives for the mods you used before? I keep copies of those separate from the game just in case.
Otherwise, I'd recommend acting like you were starting as a newb, and only add mods to fix things you feel are broken, or missing. And mine, of course, for the extra quests!
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Mods for The Elder Scrolls single-player games, and I play ESO.
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