Basically they are maginifiers for your lens. They go between the body and the lens and to use a quick example. If you have a 2x extention on your 50mm, you now have a 100m if you have a 1.4x extention on your 50mm you now have 70mm. You will loss some f stop in the equation. So on my 70-200 f2.8 when I put the 1.4 in I have a 98-280 f4.0 If I had the 2x extention it would be a 14-400 f5.6
I think that you are confusing extension tubes with extenders. You description is correct for extenders, but extension tubes are something different entirely.
Extension tubes are hollow tubes that fit between your camera body and your lens. Because they are hollow, there is really no optical difference between brands. As Jan1033 said, you really want to make sure that you get one that is compatible with your camera's eletronics. The Kenko brand extension tubes are popular because they work and they're cheap. Unlike buying a cheap lens, going cheap here isn't going to hurt your pictures.
The point of an extension tube is to let your camera focus closer than it normally would. If you wanted to take a closeup picture of a flower, your lens might normally focus only if the flower was 3 feet away. If you moved closer, you couldn't focus on it. The extension tubes solve that problem by letting you get the camera closer.
There are two other ways to solve this problem. The simplest (and most expensive) is to buy a "macro" lens. These are lenses specifically designed to be able to focus up close.
Another is to buy a close-up lens. Canon makes a Close-up lens called the 250D. You screw it to the front your normal lens and it allows you focus more closely. Because it screws to the front of your lens, you want to make sure that you get one that fits your lens diameter. You can get one bigger and buy adapter rings to fit it on, but if you buy one smaller, it won't work.
The advantages of the close-up lens and extension tubes over the macro lens are that they will work with all of your lenses and they are cheap. The disadvantage is that they are a bit of a pain. With either the close-up lens or extension tubes on your camera, you will lose the ability to focus at a distance. If you are spending a day shooting macro shots, this is no big deal. If you are walking through a garden and want some close-ups and some normal shots, you'll find yourself swapping equipment a lot.
Most people seem to prefer the extension tubes over the close-up lens. The reason most often given is that the close-up lens is glass and so it adds just a bit more degredation to the image. Personally, I prefer the close-up lens. I've never noticed any significant degredation and they are much easier to work with. The problem with extension tubes is that little things like zoom radically change your focus, so it's harder to get everything set the way that you want. I found that my zoom lenses work much nicer with the close-up lens and I have less futzing around to do.
One thing that you'll notice with the tubes is that they come in different sizes. The longer the tube, the closer you can get to the object you want to photograph. One cool thing about owning a set of tubes is that you can stack them. So if you have the common set of 3 tubes, you really have 8 different combinations of tubes that you can use to get just the distance that you want.
Another important thing to consider with macro photography is depth of field. The closer you focus to an object, the less depth-of-field you have. This can be a serious problem. It can be very difficult to get a flower shot with the front and back of the flower all in focus. You end up having to use a very narrow aperture. That means that you end up with a low shutter speed. Lower shutter speeds are a problem because if your subject moves just a tiny bit, you are so close that the movement will cause blurring problems.
The normal solution to not having enough light is to add a flash. The problem with mixing flash and macro photography is that your subject is often too close to the lens for the flash to work well. If you get really hardcore about macro photography, you'll end up buying a ring flash. It's a circular flash that fits around your lens.
I think I've prattled on long enough, so I'll leave it here.