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Aww yeah. Beat Arcade mode on Extreme today and found out it unlocks Extend Endless Mode.
Basically it injects Extreme-difficulty stages into Endless Mode. There's no option to change between regular Endless and Extend Endless -- it just defaults to Extend Endless
So when you play Endless mode, you'll play Stage 1 (Normal), then Stage 1 (Extreme). Next is Stage 2 (Normal), then Stage 2 (Extreme). Next is 3-A, 3-B, then 3 (Extreme). And so on and so on.
The trick to beating the UFO on Extreme 5 is to stock up on lives in the first four stages. I started with 8 lives, earned an extra life during the stage, and finished with 0. Some of the laser formations require pixel-perfect positioning which is near impossible given how little time you have to squeeze between them.
I submitted this unlockable to GameFAQs... hopefully they'll approve it.