This ends up being significantly worse than any other widely-used permissions system, because injected scripts act as the website, not the extension. If you've already granted location permission to a website, then it is effectively granted to the extension. There is no other ecosystem that works like this.
And to do basically anything worthwhile, including certain types of content blocking, you need this God permission that essentially disables the WebExtension permissions system. This should never have been greenlit in the first place.