I think the core of the issue is that Mozilla is thinking big. They're not happy to service a niche well (which the majority of the comments on Mozilla related posts is generally asking them to), they want to get back to their glory days, capture the mainstream.

And that is tough. Chrome won because it was an, at the time, superior product, AND because it had an insane marketing push. I remember how it was just everywhere. Every other installer pushed Chrome on you, as well as all the Google properties, it was all over the (tech) news, shaping new standards aggressively etc. Not something Mozilla can match.

But they just won't give up. I don't know if I should applaud that or not, but I think it's probably the core of the disconnect between Mozilla and the tech community. They desperately want to break into the mainstream again, their most vocal supporters want them to get a reality check on their ambitions.

If I was running Mozilla, I'd probably go for the niche. It's less glamorous, but servicing a niche is relatively easy, all you have to do is listen to users and focus on stuff they want and/or need. You generally get enough loyalty to be able to move a bit behind the curve, see what works for others first, then do your own version once it's clear how it'll be valuable to the user base. I'd give this strategy the highest chance of long term survival and impact.

Mainstream is way tougher. You kinda need to make all kinds of people with different needs happy enough, and get ahead of where those wants and needs are going.

One could argue they could do both: Serve a niche well with Firefox and try to reach the mainstream with other products. I think to some degree they've tried it, with mixed results.

The mainstream didn't get mainstream by striving to go with mainstream. They got there by serving a niche well and then expanding the niche. Trying to go mainstream without having a niche moat will make you lag behind the establishment endlessly.

I'm not an Apple fan (rather an Apple hater if you would), but they are a perfect example of this. First, have a top quality niche product, then go into the big waters with the vision you got from the niche - and then people will actually be willing to give up bells and whistles the product that is good enough.

Mozilla have a well-established niche with a vision, but they can't monetize without giving up the vision they have (and apparently consider opening for small direct donations or maybe even direct bug/feature crowdsourcing not worth it). So they keep jumping on every sidetrack. And keep losing even the niche they have.