I think your one reads quite good.
Another general note, I have:
If you use the storage.sync API to let Firefox sync (part of) your add-on settings or similar, it is good practice to also mention that in your privacy policy. Best is to explain what you do, that data is e2e-encrypted in Firefox and stored on Mozilla servers. Apart from that, just refer to Mozilla’s privacy policies about that topic.
Here is how I describe that.
The only more complicated example I have, is this one, which is quite hard, because it can contact any servers, based on the user’s choice. In the end, i ended up describing the add-on’s functionality in non-tech terms (as best as I can) pointing out where, which data is sent.
If anyone has ideas to improve this/criticism feel free to comment or (maybe better) open a new issue in the corresponding repository. (Note I’ve used permalinks above, the up-to-date version can differ, if you are reading this later.)