If I "accidentally" visit my own website while I have this extension active it'll cause any adverts to be clicked and I'll earn money from them. Unless the plugin has a way to block the action on adverts that the browser user receives money from it's indistinguishable from deliberate click fraud - all Google knows is that the browser used a programmatic event instead of a user initiated click.

To that end I can see why Google might want to disabled it. I hope they'll also reach out to the developers to come up with a workable solution rather than just blocking it permanently though. Google have an opportunity to show they do actually care about privacy on the web here.