It was never terribly consistent to use OR REPLACE (because of the lack of
comparable functionality for data types, operators, etc), and
experimentation shows that it's now positively pernicious in the extension
world. We really want a failure to occur if there are any conflicts, else
it's unclear what the extension-ownership state of the conflicted object
ought to be. Most of the time, CREATE EXTENSION will fail anyway because
of conflicts on other object types, but an extension defining only
functions can succeed, with bad results.
This isn't fully tested as yet, in particular I'm not sure that the
"foo--unpackaged--1.0.sql" scripts are OK. But it's time to get some
buildfarm cycles on it.
sepgsql is not converted to an extension, mainly because it seems to
require a very nonstandard installation process.
Dimitri Fontaine and Tom Lane