> When you fill in the details and click create, MetaMask will ask you to confirm the transaction
> Check if you're ok with the ethereum transaction fee and click submit.
In this case it's creating a new contract (I didn't notice the "new contract" logo in MM at first glance). I have to dig into the FAQs to find the source for that contract, and as you point out MetaMask can't guarantee that's the actual source. So this is an easy opportunity to stick a backdoor in that can hijack your created coins at any point.
A better approach would be to call an existing contract on the blockchain which creates a new contract from it's own source. Is there a reason not to do this?