The desktop browser was stagnating because the browser owners had no idea where to drive it, and some people with the castle keys were change adverse (some finally "left"). They took as an excuse that they could not get support from the platform team, so the platform team killed FxOS support and ended up being absorbed by the Firefox organization to become just the fx backend team (great strategy!). I guess the platform VP was so frightened by the Tofino experiment and Fx Desktop moving away from Gecko that he didn't understand that was betting on the wrong horse long term.
If Mozilla's goal is to strengthen the interests of a wide range of users against the narrow interests of two or three oligopolists they have to consider entering the OS game in spite of the immense difficulties.