Because they are part of the name of the file. Note: my file manager even identifies the mime type without extension. That is how it should be, changing the extension should not make the file harder to use. To this day, AFAIK, windows file manager still uses the extension to identify file type, thus allowing the user to easily change it may break expectation. GNOME's nautilus, KDE's Dolphin and even Apple's finder do it right: press f2 and you can rename the file without changing the extension, unless you go out of you way for that.
It is also a security breach: image.jpg and image.exe may look the same.
> Why shouldn’t people use their desktop as they please?
Sure they should! But the fact that the OS lacks a working /tmp incentivizes a form of use that is disorganized and ugly.
> Why put drivers in the kernel?
Read about complaints about wacom tablet driver phoning home or printers drivers doing the same. To use my wacom tablet I simply plugged it. Since it is on the kernel, it will work on any architecture the kernel support. They didn't spent a dime to make it working on my raspi, for example. Also, once it is in the kernel, whoever change any internal api will fix every driver code to keep it working, so things that work once will work for a very long time. I met people who lost a TCE scanner and an ASUS mini projector because it wasn't supported by the most recent windows versions. The ASUS mini projector (disclaimer: I had a little involvement in the development of its driver) works on my rockpi4 just by plugging it; the windows experience with it is far from that simple.