I think most of what you have said is reasonable.

I think the concern I have is in what they said they will do. That is quite disturbing, and unless they are lying, that is where their intention is. Combined with web manifest v3, it's clear they are quite motivated and they have a long term plan here. They're dropping it piece by piece perhaps to remove opposition to it. Rather than stab someone to death, it'll be death by papercuts. My view is we should take the paper off them now based on what we know, rather than waiting until they kill someone.

My concerns is beyond extensions, it's when it goes towards browsers, and operating systems. My concerns is with the focus on attestation, is this is going to have the potential to tie in to TPM and could be potentially used for fingerprinting based on hardware regardless of what you try to do. There is a number of things in motion that independently seem benign but when combined together, are absolutely disturbing. Giving google control over what is and isn't approved is dangerous. They simply cannot be trusted.