Firefox appeared at a time when there was huge potential being stifled by a stagnant monopoly in the space, and people were desperate for something good. It filled a real need, and people loved it. FirefoxOS appeared at a time when there was huge potential being actively being pushed forward and innovated on by the two largest tech companies in the space, and people already had two great options to choose from. It fi…
Completely agree that they should turn their focus towards solving privacy and identity management. I'm hoping that this might mean they can direct some resources towards Persona development again. Or at least experiment with something new in this area.
On top of that, I'd argue IM + video/audio chat that respects privacy is something that desperately needs better solutions.
I'd push software forward, and then innovate on protocols. Peer to peer might be the only way to achieve true privacy.