I think I'm getting the hang of writing hideously sarcastic FAQ entries now...
Q. How do I parse add-ons to facilitate installs?
A. You don't. This isn't SMF and you don't have to fight against add-ons to install them. The Plugin Manager takes care of all that back end file editing poop you had to deal with in SMF.
Q: But what happens if I want to do a manual install?
A: You'll never need to do a manual install. We've spent a lot of time (and blood, sweat and a few tears) making sure that you never have to dirty your hands editing the core to get add-ons installed. Rejoice!
Q: But...
A: Look, if you're so desperate to manually install, download the plugin to your computer, unpack the zip, upload it to a new folder inside Plugins/ and just visit the plugin page, but come on, you *really* don't need to install add-ons by hand any more. It's the 21st century, let the machines look after themselves.
Q: But what about theme edits on my custom themes?
A: The plugin manager can't make custom theme edits, so no parsing required.
Q: But what about edits that conflict?
A: The plugin manager can't make file edits, so no parsing required.
Q: But isn't that a bit limited?
A: Well, yes, but it's the lesser of two evils. You can either have a system that's infinitely flexible and by result, infinitely fragile (SMF), or something with a few rules and regulations that's stable (Wedge). You can't have it both ways.