iOS users are able to download browser extensions as well. They just have to be for WebKit. Which there are plenty of.
The iOS version of Firefox uses WebKit under the hood (for now at least)
No luck, and not for lack of trying. I’m not entirely certain what feature is missing in WebKit that results in the hamstringed adblocking capacity, but it’s definitely much worse than you’d hope for. You can get adblocking extensions on iOS that will block ads on most websites, but when it comes to the truly shady ads that do not even try to masquerade as being legitimate, iOS falls short. It’s likely something I could handle on the DNS layer if I wanted to dedicate a day or two towards, but I’ve similarly travelled down that rabbit hole to no avail as well.
It integrates as an ad blocker for Safari, so I don't actually use Firefox itself (since as you mentioned, all browsers on iOS are just a wrapper to Safari anyways).
I just browse using Safari and ads are blocked by Firefox Focus. Pretty neat.