Earlier quoted context omitted.
It's worth noting that the Chrome Web Store is currently full of malware and most malware I see on PCs was installed via the Chrome Web Store. By design, HTTPS does not protect your privacy at all if you have extensions that violate it, since they see what you see after TLS termination. So this is a huge deal, Google is already bad at it, but I can't fault them for heavily restricting extension install: Currently the…
You do realize that the original Pushbullet issue arose from Google trying to be even more strict and reduce the amount of malware, right? And even with all that, as you mention, CWS is still full of malware. What hope does any other store then have to create a malware free web store if even Google can't? And if they allow installation from anywhere, do you realize that whatever state we are in now, it would be order…
I think you're giving Google too much credit here. For years nearly every single extension, no matter how targeted the purpose, has told me "This extension will have access to all your data on all your web pages". It is such a no brainer to do a little better than that but they tolerated it for years.
In a few cases I looked into why developers requested that kind of permissions and the answer was that Chrome permissions weren't designed well enough to allow narrower permissions. So Google has no excuses here. They control the browser and the store.