Earlier quoted context omitted.
They have a custom auto-installer for Flash baked into Firefox, and they've even distributed the binaries to it from addons.mozilla.org. Nobody that hasn't already been wanking over it is going to start using Theora. Authors will just fall back to Flash playing h.264 in mp4 containers via HTTP like they've been doing for years, which Mozilla is eager to support. There's nothing consistent about their principles.
They don't have to cough up $5 million to support Flash. That's a priniciple I can understand.
The salaries of all the cheerleaders and wheel-reinventors have to add up to something substantial. They've got piles of Google cash — they stopped begging for donations after their $60m search-referral windfall in 2006 got publicized, but they've gotten secretive about their financials after that.