Amazon uses it mainly for Fargate and Lambda (from what I've read).
Docker is a container technology (shared kernel), while Firecracker is an actual VM manager so it provides better isolation. It is more comparable with QEMU.
From what I understand, even QEMU can work in different modes, either emulating hardware or a system call interface. So I'm not sure which of those modes you are referring to.
“ Firecracker enables you to deploy workloads in lightweight virtual machines, called microVMs, which provide enhanced security and workload isolation over traditional VMs, while enabling the speed and resource efficiency of containers”
Security of a VM + efficiency of a container.