Earlier quoted context omitted.
Yes, my point exactly. Battle is lost. There's too much at stake here to cripple the long term for a moral victory.
They haven't just lost this one battle though - they've set themselves up to lose a thousand further battles in the future. This puts Mozilla in a very bad strategic position; once DRM in the form of EME is relied on by a large chunk of the web, they have no way of resisting demands from content providers and their EME module provider to make it more invasive in an attempt to make it more robust. If sites like Youtub…
Once Google+Microsoft or Google+Apple or god forbid Google+Microsoft+Apple have decided to do something, there is literally nothing Mozilla can do to stop it. It's too late. If Mozilla manages to slowly build up a larger market share, at that point they may have leverage in those situations. Right now they don't, and pretending to have leverage only further erodes their marketshare.