Their selling point was privacy. They’ve now made a deal with the Devil (Google).
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Ackchyaully, Mozilla's deal with the Devil Google is under legal scrutiny and suspended, such that Mozilla lost 80% of its revenue that it would otherwise have had from that deal -- which is why they're now looking for alternate revenue streams, such as these modified privacy practices.
These policies aren't as absolute as they once were, but they do still provide a measure of anonymity and are fairly common anymore in online provider contracts.