Many times, how developers / (manager that think it is a great idea) design an application and how users, use an application do not intersect. I personally would not install an extension to my IDE without at least skimming the docs, checking the licence to see if I am going to have to subscribe or pay later, and checking reviews to ensure that it's a legit extension. I am certain, that there is a contingent of people that do, but as for developers, I would expect them to be a power users that knows better than to just click a yeah, sure install that button.
Honestly, if that where the only way to install extensions on VS Code it would probably be a deal breaker for me. I never install something because the application tells me I should. Especially in an ecosystem where anyone can provide a package. To me it would be akin to blindly adding an Node module, python module, jar or any other third party provided dependency to the custom software I am writing without first vetting it. I mean the licence for an extension, could very well state, that any software produce form the use of this extension, entitles the author of the extension a 10% royalty from said resulting software. That is a very real and valid licence, game engines, codecs, encoders use it all the time.
Honestly, if that where the only way to install extensions on VS Code it would probably be a deal breaker for me. I never install something because the application tells me I should. Especially in an ecosystem where anyone can provide a package. To me it would be akin to blindly adding an Node module, python module, jar or any other third party provided dependency to the custom software I am writing without first vetting it. I mean the licence for an extension, could very well state, that any software produce form the use of this extension, entitles the author of the extension a 10% royalty from said resulting software. That is a very real and valid licence, game engines, codecs, encoders use it all the time.