3 Business days is their target, but it’s not a guarantee. 2 to 10 business days is normal, and recently with v5 being killed off and CSP changes there should be an expected increase in the number of extensions in the review queue.
The Extension Submission Best Practices does state that there are situations where a live channel is required for review.
I’m not sure where you’re getting this 24 hour figure from. Twitch kills rtmp streams around the 48 hour mark, at which point you just start streaming again to continue, which can be handled automatically by most streaming apps.
If your Extension requires a live device to operate then that would explain why it was required for your channel to be live. Generally if something appears to not work then the review team will reach out or fail the review stating that. Unless its operation is completely clear, then it’s very easy for more complicated extensions to appear broken, this is why proper review notes are critically important for best review times.
Bits transactions are not ‘donations’, it’s an important legal distinction. The Extension documentation has a whole section on Monetization, as well as the Extension Guidelines having a section on the requirements/restrictions on their use.
If you’re not happy with the safety and security requirements then perhaps an Extension is not the appropriate solution for you. Twitch will obviously take as much precaution as they can to protect their broadcasters and viewers, and if your Extension is asking broadcasters to just download and run some random app that Twitch hasn’t vetted then it should be obvious why Twitch has an issue with that.
Also as an off-topic note. It’s probably not helping your cause that you’re likely infringing on Twitch’s copyrights by using the (now removed) PogChamp emote as your user icon.