I've had similar stories, accounts banned, extensions denied because they didn't understand what it did, one was denied because it had minified code, the review process could use more work.
It’s a tough situation, because the amount of access that these extensions have to users’ actions can be extreme. Malware is a much greater concern than, say, the AppStore, as access to sensitive information is far less controlled.
Agreed. Until extensions as itself get some guidelines - it needs to be inspected closely.