Truth is, from the browser vendor perspective, it already is. Firefox used to be in an "arms race" of sorts when it was one of the most dominate browsers as well. Google just intensifies this reality as Microsoft with internet explorer rested on their laurels at a certain point which let Mozilla not have to push as fast/hard as they do now.

Yes, as is any ecosystem with competing parties. Surveillance companies want to exfiltrate as much information as possible, users want security. Every new facet added to the API is a site for this competition. Which is why every new web API needs to be reviewed by someone looking out for security of the users.