There are other ways to accomplish a redirect within the extension, but none will likely have as good UX by doing it the way you described.
Building out the declarativeNetRequest api in Safari would be really beneficial to developers and I am sure filing feedback would help get that point across.
browser.webRequest could be used, however it is only supported for persistent background pages, which is incompatible with iOS and manifest v3 project. - https://developer.mozilla.org/en-US/docs/Mozilla/Add-ons/WebExtensions/API/webRequest
You could use a content script to redirect, however depending on the amount of logic in your app, this could be less optimal UX.
You could use browser.tabs.update, but again, less than optimal user experience: https://developer.mozilla.org/en-US/docs/Mozilla/Add-ons/WebExtensions/API/tabs/update
Hopefully Apple will build out the rest of this API for Safari. Here's a somewhat related thread: https://developer.apple.com/forums/thread/682541