With all the distractions they are abandoning their primary product and they are bleeding whatever miniscule market share they have. This means Google has more leverage over them and can eventually stop the funding once their market share drops beyond a threshold say 0.5% because we all know antitrust is not a strong reason anymore to keep FF alive based on trends of recent rulings.
Chrome gained marketshare not just because it was a good product but because they paid Adobe, Oracle, and legions of freeware antivirus providers lots of $$$ to put a checked-by-default box in their installers to install Google Chrome and make it the default browser for anyone not paying enough attention to uncheck the boxes, and because they targeted Firefox users visiting google.com with popups advertising how much better Chrome was. Mozilla could never do that and they would be excoriated if they tried. And as I mentioned, many of the aspects of Chrome that were indeed superior, were met with kicking and screaming when Mozilla tried to follow, e.g. choosing performance over the XUL extension ecosystem.
Sadly I think their best hope to regain marketshare is to indirectly benefit from Linux to capturing marketshare from Windows.
Exactly right. They did the dang thing with Project Quantum, a massive rewrite of the browser, a massive leap forward in stability and performance. The thing everyone asked for. And they..... continued to lose market share. Because there are other factors, like monopoly power, and distribution lock-in.
You don't have to imagine what it looks like for a browser company to lap the field with an excellent development team, creative revenue raising ideas, being ahead of the curve on mobile, having best in class stability and performance, and building out features that their core user base loves and swears by. Because Opera was that company in the 2000s and 2010s.
But even Opera had to sell to a new ownership group and abandon their Presto engine for Chromium. Because, like Spock said, you can make every decision correctly and still lose. Which is kind of depressing, but it at least helpfully bursts the bubble of people claiming changes in market share are a one-to-one relationship to specific decisions about which features to build in a browser.
I think they should have pushed for a gecko based electron alternative. End user dont really care if their favourite markdown editor or notes software is based on electron or gecko but it would have made sure that developers do not target, develop and test for only chromium based browsers.
It also wouldn't be directly revenue diversification. You can't beat Electron by selling an alternative.
Firefox has somewhat tried to target developers. There's Developer Edition with a "direct to the dev tools" focus. Firefox's Dev Tools still generally are somewhat ahead of Safari's and Chrome's (though not always Edge's, even in the Edgmium era one of the few teams that still exists that doesn't upstream everything immediately is Edge's Dev Tools work). Firefox was directly ahead on Flexbox and CSS Grid debugging tools, though now everyone else has copied them. (Not to mention that the history of Dev Tools in the first place all points back to Firebug and other Firefox extensions that went mainstream and then made sense to prioritize as out-of-the-box tools.)
Firefox probably can't do much more to target developers on its own, from a browser perspective. Targeting developers doesn't seem to move the needle enough in marketshare, either.
It's not just Electron that developers are stuck in "develop and test for only chromium based browsers" modes. There's also all the top-down pressure in corporate environments to standardize on only one browser to "cut down" on "testing costs". There are the board room-driven development cycles of "I only care if it looks good on the CEO's iPhone" or "the CEO is into Android this year, that's the focus, everything else is garbage". There's also the hard to avoid spiral of "Firefox marketshare is low, don't worry about it" to more sites not working as well in Firefox to Firefox marketshare getting lower to more "don't worry about it" websites and so on.
They did! At least three different versions of it!