PERMISSIONS LIST

The "Download files" permission is used to export FoxyProxy settings to a file (so you can import it elsewhere). The "Download history" permission is required only because Firefox does not allow add-ons to specify just "download files" without "download history". It's all or nothing. Internally, nothing is done with your download history. This is open source software and you can view the code yourself by unzipping the downloaded then using a text viewer, or by visiting https://github.com/foxyproxy/firefox-extension

"Clear recent browsing history, cookies, and related data": this is used by the big eraser button since version 6.3. You can delete cookies, cache, etc with one-click.

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This add-on is Firefox Recommended; therefore, the code is manually reviewed by Mozilla for privacy theft and permission abuse. It does neither.