I'm continually surprised that we don't have a clear delineation between extensions that "do" something—maybe relying on well-known third-party SaaS APIs in the process—and extensions that exfiltrate your browsing data.
99% of extensions don't need to send the URL anywhere without the user clicking to activate them; nor do they need to send the whole content of the page to a server, ever.
You know how macOS now has a capability-model for apps, where it sometimes says "X wants Y, and it's been denied it; you can go into System Preferences to manually give it Y"? That tends to neatly fix the "99% of apps don't need Y" problem, by increasing the friction to getting Y to the point that users won't generally bother unless the whole point of the app is Y.
I'd love to see that implemented for browser extensions—or, in fact, for individual tuples of {extension, trigger, data, third-party origin}.
In the sane case, that'd look something like: {Instapaper, on click of the extension's button, current tab's URL, instapaper.com}
It'd be pretty clear, just from looking at one of those entries, whether it's something that contributes to the functionality of the extension or not. Extension authors would undoubtedly write "installation instructions" urging users to enable these; but if the instructions say to enable a stanza like {MalwareExt, on page load, sends everything it can, to badserver.info}... well, even the most guileless user would think twice, no?