The stock wire harness on my LSU 4.9 sensor puts the controller in a lousy spot for mounting. Ideally I would like to add a few feet of wire to the O2 sensor cable itself so I can mount the controller in a better spot. Is this a bad idea? I see such extensions on eBay, but just cuz you can buy it on eBay doesn't mean it's a good idea. Seems like even if there's a small additional voltage drop, I could account for that in the tune.
Assuming you are getting a pre-built, crimped, etc extension to the sensor, that shouldn't cause any problems.
Unless your controller is sending a digital signal to your ECU (which is unusual), it won't make a difference either way since there's a chance for an analog voltage drop on either side. It is a bit less risky to modify the controller-to-ecu wiring however since WBO2 sensors sample fresh air from between the strands of their wires and the wrong kind of wire joining can cut off their fresh air supply...not kidding.