The Death Star cannot fire on capital ships, and it's probably a sure bet that it cannot launch fighters like Imperial starships can, right? I would assume this to be the case, since the Imperials would be burdened to protect their Death Star at all times with a fleet.

 

 

However! Would it be possible to mod this? To make the Death Star able to destroy enemy ships and launch TIE squadrons of its own?

it should indeed have tie squadrons of it own

but the death star you can build now in the game is the mrk1

the mrk 2 seen in episode 2 is the only one who can fire on ships

& this is already discussed in an other thread

I believe he is meaning making the DSII in a mod.  There is no mechanism for the Death Star in EAW to aim, so I am not sure how you would do this.