Earlier quoted context omitted.
They're refocussing on the user experience of the browser. They're stopping their more developer friendly endeavours and research projects such as servo. The VPN client and Pocket are just ways to make money to fund browser development. Firefox itself does not and can not make money (and not from lack of trying). It turns out people don't want "ads", "nags" or "suggested content" in their browser.
In the long run, these changes will hurt the user experience of firefox. If you ignore developer tools and similar, then developers will be less will be less willing to develop for and test on your browser, especially if your browser already only has a minority of user share. And it doesn't matter how cool your chrome is, if websites don't work in a browser, user's aren't going to use it.
Maybe these are all short term necessities for Mozilla, and when things get back to normal they'll pick up where they left off. One can at least hope.