Another approach that might work is to have a middle tier between the highly-curated recommended extensions and the wild west.
What I’m imagining is a list curated by a larger group of volunteers rather than core team members who likely have better things to do. This collection wouldn’t be shown by default, but the checkbox to enable it would be prominently featured at the bottom of the list of recommended addons.
Criteria for inclusion would be more lax. Of course malicious or user-hostile behavior would be grounds for rejection, but otherwise addons that attempt to be compatible with Fenix and don’t have obvious severe issues would be approved. To mitigate the risk of abuse, perhaps this should require two or three volunteers to approve the extension.
I still think there should be a checkbox to allow the installation of anything on AMO and any XPI from the filesystem, but that should be more buried with more dire warning labels on it.
I suppose by making this proposal I’m volunteering to help with such a group.