Because Google calculates clicks as results, people are encouraged to click the ads, meaning news sites earn more money if clicks increase, and the advertiser has to pay more money to Google if clicks increase.
Ad fraud is when you scheme to get clicks on your own site to defraud the ad network that would pay you for the space you sold them. It is not relevant here unless you're using the extension on your own site.
Yep, the newest strategy of the Twitter crypto scammers is to hack verified accounts of lesser-known users, then change the account name and profile picture to that of the user they wish to imitate.
The google.com domain would also probably trigger autofill recommendations from some password managers, which would make things even more convincing and seamless.