Manifest v3 blocks user tracking -- if the request is blocked, any tracking attached to it is blocked. I'm sure it's not 100% perfect, but it's certainly working well enough in practice.
And what malware are you talking about? If a request is blocked, it's blocked. It doesn't matter if it's an ad or malware.
Manifest v3 is better at #4, because the junk isn't loaded, and the blocking is more efficient in terms of CPU.
And then #5 I don't know what you're talking about. I use Stylus and Tampermonkey to customize webpages and they continue to work great.
So I just don't see the evidence that "Google is 100% boiling the frog here". That's what everyone was saying, but now that Manifest v3 has come out, I just see adblocking that continues to work and uses less CPU to do it.
I see a lot of fearmongering around Google, but now that the results are in with Manifest v3... they just don't seem true. You're making all these claims, but I just don't see the evidence now that we're seeing how it works in practice.