This reverts most of 89e983786a, as those references are sanitized now.
Fixes#10039, at least most of it.
The `sane` case wasn't fixed, as it calls a *function* in pkgs to get
the default value.
Using pkgs.lib on the spine of module evaluation is problematic
because the pkgs argument depends on the result of module
evaluation. To prevent an infinite recursion, pkgs and some of the
modules are evaluated twice, which is inefficient. Using ‘with lib’
prevents this problem.