Unfortunately, I think Cursor is making progressively more difficult to use other AI provider via extension, mostly due to the fact that they are reserving the secondary sidebar for their own chat interface. This makes it super unpractical to use the Codex and Claude extension, as now they all need to share the primary sidebar. (Before it was not optimal, but it was at least possible.)
As many have pointed out, the cost of token via Cursor is prohibitive compared to having a CC or Codex subscription, so I think the new update brings little to current users, but reduces Cursor's usability.
I think Cursor should go in the direction of embracing other provider's extensions and go for a more integrated and customizable IDE, rather than a one-solution-fits-all kind of an approach. Today I opened VSC again after a log time.
I use Zed. Much less user hostile.