But it's overriding a fairly useful setting, one that we use internally: By preventing webextensions from running on "sensitive domains", which includes AMO by default (since that could allow an addon to install more addons and bypass or hide the user prompts, I gather), but it would also include any other domains you've marked as sensitive.
I don't use Firefox at work unfortunately (because of https://bugzilla.mozilla.org/show_bug.cgi?id=963354), but we generally want to allow users to install addons on non-sensitive sites.
Internal domains that are much higher risk, and may have regulatory requirements around who can receive data on them (eg, because of GDPR). So we'd use a setting like this (or the equivalent in Chrome) to restrict addons on those very sensitive sites. Having addons like Tridactyl that undermines that is a big red flag.
I admit I don't fully understand all the nuances here, but it seems like Mozilla's stance closely aligns with what I'd expect here.