Time to go get caffeine and take a morning break!
It was overhyped by politicians, but what isn't? Maybe they even steamrolled over engineering red flags. That doesn't mean it wasn't a valuable experiment.
The threat is absolutely real. Bad actors regularly offer large paydays to lone developers with popular extensions so they can roll out an update that quietly adds a backdoor.
There's at least some publicly documented evidence that Raymond Hill (uBlock Origin) isn't likely to cave to this sort of pressure, but do you really believe that none of the other authors of your fifteen favorite extensions would look the other way for $100k?
Keep in mind that these offers don't look like "Here's some money, please let us roll out an evil update to your extension." They look like "Our company has a product with a similar name. We love your extension and would like to offer to acquire it from you so that we can use the name. We'll even let you keep the rights to your software so that you can re-release it under a different name if you'd like!" They'll make it really easy for the developer to remain in denial about what they're actually facilitating.
Google will not change any rules to forbid bidding on brand names because they are making a ton of money of it. Think of something like amazon paying more than $1 for every click just to not loose any potential customer. Adwords is a money burning system.