Well specifically speaking on this example. In order to install chrome extension like this pop-up, it will redirect to chrome extension gallery page. So if the pop-up is doing something other than that, it should trigger a WTF meter in your head.
To install a chrome extension you have manually install it by clicking "ok", even after that if it accesses your private browsing data (which is the only thing Chrome extension has access to) you will get a second warning, making sure you understand this. Even after that, Chrome extension runs on its own process, seperate from each tabs (which runs in its own process). And each of those process runs on its own sandbox.
Lets even leave all that out of consideration, and that javascript is being used by some very popular websites, includeing huffpo, independent and some random sites I encountered but don't remember right now.
The guy from DS is just crying fowl.