What do you think about this metal flue chimney extension, anything wrong, allowed?
I don’t have a problem with it.
At least they could have used black… It looks dorky, to me. 
other than being so incredibly beautiful it prolly performs the funtion it was intended for…
Is it just a metal chase or some custom item? Why is it needed or added?
What is the clearance to the object to the right of the picture? Is that an added story on the house?
It was added to make the chimney taller for proper draft.
There was a house extension added. The chimney was either extended after to accommodate new clearance or during chimney’s construction. The clearance is of not a concern, but other issues could be 
I am sure they added the extension due to down draft problems.
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What is it used for?
Wood Fireplace…
I have seen homes that converted the fireplace to a wood burning stove and had to extend the flue several feet above the original chimney height.
The only concern I have is the metal portion will cool down quickly and may cause the creosote to build up faster.
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That was my concern also if the fireplace is wood burning.
The crown around the top of the brick is shoty at best and will allow water penetration, a tuck point job is not far off as it is.
The pipe looks discolored on the right side, and we can not see how it is attached with the flue liner or if they went all the way down with replacement.
So I would recommend to have a evaluated by a qualified Chimney sweep Contractor to review.
Chimney’s can cause a house fire if not properly done, and I have strong doubts this was anyone competent or they would have done a better job on the crown.
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In my experience, the trees can act as a partial wall, and they are quite tall. Even with the 3/2/10 rule a roof can act like the top of an airplane wing. The smoke can roil off the roof drip edge, going lower than the roof line (depending on wind), though over the yard not the roof itself.
Too high of a pipe can be detrimental since it leads to a lessening of an ability to control the air draft from the chimney. The stack/chimney effect can be overwhelming.