This a most pointless decision. making firefox fast at the expense of the extensions. why would it make people switch back to FF? because it's 1% faster than chrome? come on, it's 2k17 and few care about that. Edge might be faster than both and people still would not use it. FF had its selling point to power users which is why i'm currently browsing from ff. Now there is no reason at all to use it. I guess there is n…
The two issues are separate -- they didn't change the extensions system to make Firefox fast, they changed the extensions system because the old extensions system was a security nightmare.
Otherwise, if you install a multiprocess-incompatible extension, Firefox will essentially fall back into single-process whenever that extension does something. So, then a good portion of the extensions on AMO would come with severe, for the user inexplicable performance problems. Mozilla would have just not rolled that out without knowing that the switch to WebExtensions will clean that all up.
Well, and then besides that there's also the points that 1) the old extension API is quite complex, so it's comparatively hard for extension authors to write an extension, especially also qualitatively good extension, 2) the old extension API was really unstable, basically whenever Mozilla changed something about Firefox, some extensions broke, and 3) with the new extension API being based on Chrome's extension API, it becomes often trivial to port Chrome extensions to Firefox, making it much more likely that Firefox will continue to have extensions even if Chrome continues to eat up market share.