Transactions are supported in Durable Objects. In fact, with DO you are interacting with the SQLite database locally and synchronously, so transactions are essentially free with no possibility of conflicts and no worry about blocking other queries.
Extensions are easy to enable, file a bug on https://github.com/cloudflare/workerd . (Though this one might be trickier than most as we might have to do some build engineering.)
Re DO - I am definitely not rewriting my web wasm rust-sqlx app to use DO.
Re filing an issue - sounds straightforward, will do!