I don't see how is Mozilla in a tough spot regarding user freedom, it's entirely possible to allow local extension installation and educate users about the associated risks, like other browsers do.

Most people can live with the restrictions you impose on them, but the restrictions can still be missguided or thoughtless.

> it's entirely possible to allow local extension installation and educate users about the associated risks, like other browsers do.

I think one of the issues is that users aren't the only ones that can install extensions locally. I think Mozilla even introduced this as a response to Microsoft pushing its own extensions into Firefox.

I don't like the restriction either, however most users are dealing with an actively hostile OS and any setting that could be set at runtime instead of compile time would just look like an open invitation to the OS.

The solution to a hostile OS is to use a different OS (and Linux has WINE), not break your app.

Not an option for most Firefox users unless Wine gains a few thousand more active contributors.