What is wrong with KaiOS itself?
The text entry is really, really horrible. That's probably the worst bit. The OS is pretty unintuitive and inconsistent in the UX. No-one is really developing apps for it as far as I know.
It's definitely way worse than c. 2007 Nokia Symbian devices.
Not only did that $35 dollars phone never happened, average selling price of iPhone was $700+ selling at hundreds of millions of unit every year. Mozilla later had to revise the target to $50 phone which was still wrong. It just shows software people simply dont get it.
And they had the vision of running the OS, preferably with Javascript only. Writing all modules in JS if possible. It was the early days before asm.js or WASM. And they spend a lot of time battling this. One engineers even wrote the culture was so JS-focused no one dare to ask why some of these aren't written in C++.
All that combine with rapid pace of development in Smartphone software. They lost out and it is now forked into KaiOS. Which is doing surprisingly well without Mozilla.
Mozilla kind of feels like Xerox in many ways. A lot of great "ideas" came out of it. But they never manage to capture much value.
[Note] It does seems counterintuitive, but 20 years later may be ChatGPT / LLM will make software cheaper faster than hardware getting cost reduction.
There's a whole series of popular phones in India that ship FirefoxOS. I think they're sold by Jio, a carrier there.