My problem with extensions is it's another development team to trust and monitor. I need to know if the extension has been sold, taken over by a new lead, etc.
Yep while this manifest v3 ugly thing is putting me on the brink of jumping ship (I compromise by having two browsers), as for your concern I found that Chrome is going to allow blacklisting extensions for sites, so now I can turn them off for the few sites that I really worry to grant extension read access.
If you are fine with two browsers, maybe you could instead look into separate Firefox profiles with different sets of extensions. I have added "-p" to my Firefox shortcut so it always starts with the profile picker thing.
Yeah that's definitely fair, I have the same concern. Currently I've reduced my extensions to just a few that I either trust (like gorhill's) or that I wrote myself. But I think it would be huge if Mozilla built out the tooling needed to keep a better monitor on them. It's an extremely hard problem to be sure though.