I agree with this so much.
Once it was clear that Chrome was destined to cater to the masses, Firefox should have done a hard pivot with an emphasis on privacy and putting the user in control of their browsing experience. The best time to do this was a few years back when all of this was becoming obvious, but now with massive popular distrust of large tech companies like Facebook and Google making daily news, the second best time is now.
There's a reason I run Linux and BSD on every computing device I own, instead of Windows or Mac. It's not because it's easier to use (they are not), it is not because it has more bells and whistles (they do not). It's because at the end of the day, _I_ am the one in control of my computers, not some product manager who needs bullet points on his or her annual review.
There is no universe in which Firefox is going to successfully compete against Google at their own game, especially when Google is _still_ the majority source of their funding. I have no evidence for or against this, but my greatest fear is that the people at Mozilla who were passionate about the same things that I am passionate about have left out of frustration and the only ones left are there for the lifestyle and hipsterness of "working in tech" at a non-profit in a trendy city.