The possibilities of getting this into module would take more effort because - it requires the login, registration to be modified.
But the e-mail confirmation can be made as a module and we can check to see if the module is activated or not to use the modified login, registration scripts - this is one possibility to convert it into a module. but not sure how much code change that it would require.
If any one can volunteer to make these changes - it would be great as we are developing modules as a side task apart from our main work (Mobile applications development + consulting) and cannot afford more time into this