Microsoft and Google make CDMs; no one else had a chance in this fight.
While probably correct since the majority of users do seem to like Netflix, others ignore Netflix and get their media through, shall we say more "obscure" sources. Such an obscure browser would seem to suit their needs just fine. Tor Browser doesn't need to be popular among the masses for those who use it to find lots of value in using it, for example.
That doesn't remove the ability of a minority of users to use something different and make use of the more "obscure" sources, but it does allow the majority of non-technical users who don't care one bit about all this to play the content they want, and in a way that protects their security much better than the old plugin-based approach.
There is no rule that industries whose business is built on copyright need to be able to live in the browser. Netflix demonstrated that quite nicely. Just because the want it doesn't mean they should get it. I personally cripple EME on my browsers, and if your content won't display for me, I'll happily go elsewhere. (Haven't had the problem yet, but fully expect to.)
It is bad enough, but unsurprising, that the closed browsers would go along with user-hostile bullshit like this. That Mozilla did, I find appalling.