yes, anyone with your private key can use the account - post, edit profile, etc

there are extensions such as alby and nos2x that protect your key from webapps, which reduces risk a bit, but we need better tools, will take some time

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For now just don't go crazy pasting your Nsec around. We def need better tools. If you want to test out new stuff that requires an nsec just create a new account you do not care about and use that

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What about a vault backed extension? Keys never leave the vault machine unless accessed physically. Signing happens on the machine, browser never sees any of it. Self hosted of course but could scale if needed. Advanced MFA could happen with browsers which is nice as-well