Technology
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As long as they can't manage to make a half-decent mobile browser this hardly matters.
Performance improvements are nice and all, but unless the performance is truely terrible, it's the least relevant factor.
Much more importent are:
Their Android version is completely useless since the reboot (which is especially sad since the version before was hands down the best UX for a mobile browser on the market). They even dropped their VR version, even though it was literally just their Android version with slightly adjusted UX. They don't even have any form of tablet UI or Android TV UI.
And since their market share is steadily approaching zero, more and more websites drop support for FF and it's noticable.
The support part is what really kills FF, since it's not really in their hands whether web devs test websites with FF.
Lower market share -> less support -> lower market share.
Especially users who "just want the browser to work" are affected by that. They don't care much about the browser, but about the websites. And if their favourite websites tell them to stop using FF, they will. And that kind of user makes up the biggest part of the market share.
And since FF has no platform where they can push their browser (contrary to all other major browsers), they also won't get new users.
As much as we would want it otherwise, FF is dead, they just haven't accepted it yet. And that's true for almost all Mozilla products and Mozilla itself.
The only way I see how this can be reversed is if e.g. the EU decides that Mozilla and/or its products have some special value and starts funding and pushing them.
What is actually your problem with Android FF? I use it every day on my phone.
Yes, it's not as snappy as Chrome, but besides that everything works perfectly. In addition to that: Fully fledged ad-blocker like on desktop, one big reason why I no longer use Chrome on my phone.
Compare that to e.g. Vivaldi:
The only advantage FF on Android has over Vivaldi is that it's easier to access the reader mode on FF for Android.
you can use every extension for firefox desktop on mobile, you just have to add them to a collection
And in basically every instance a FF desktop extension that wasn't made for the new FF on Android will not work on it.