My initial reaction to this was shock and disgust and I quickly uninstalled the extension.

However after seeing Joel's actions to address the issue promptly I'm glad to re-install the newest version.

I think, like many users, I really don't (didn't?) mind as long as the details of what's going on behind the scenes in the extension are clearly explained. I would even be happy to pitch in a few affiliate shekels with the developer of the app.

In short, honest disclosure wins out.