From a security standpoint, WebExtensions are a lot better, since they are sandboxed and require explicit permissions to be granted for many things.
From a developer standpoint, they are easier to deal with, being JavaScript, and since Chrome and Edge support similar APIs, developers will no longer need multiple codebases to support their extensions on multiple browsers.
They also work better with a highly concurrent browser. They use asynchronous APIs that don't directly call into browser APIs. FFs old extensions were known for leaking memory, which is a lot less of an issue with WebExtensions.
Compatibility is another huge thing. With old Firefox extensions, compatibility was just an extension author saying, "Yep, the APIs still work the way I'm using them." They often broke in subtle ways and you could get them partially working by overriding the versions supported in the extension manifest. Not so great imo. WebExtension APIs are more or less like JavaScript APIs and compatibility is mostly going to be limited by support for capabilities. Like, I'm sure Firefox does not support the USB API that Chrome does.
There's so much to be gained from getting rid of the old extension system for concurrency, extension compatibility, and the health of the ecosystem and individual browser installations. Many will be angry and stick to ESRs and others will be mildly upset but I think in the long run this will have been one of the better Mozilla decisions that make Quantum a success.