Here's what I think:
MODS is a format by and for the library community.
PRISM is a format by and for the publishing community.
As a scholar, I fit in a third community that is neither really here
nor there., and I think neither of the above two fit those needs
In any case, it depends on what you're trying to do, and who you
ultimately want to serve. I think your current feeds are closer to the
data models/formas that scholars would tend to use (in Endnote, and
now Word 2007 itself; OpenOffice) and that MODS serves no useful
purpose there. OTOH, there may be other uses for MODS?
Raymond and Karen are both right about the need for treating authors
as full resources, rather than dumb strings, though. Interestingly, MS
is doing that in their new citation support.