This is an impossible counterfactual to figure out. Microsoft crushed Netscape, and it's far from clear that continuing Netscape as it had been going would have had anywhere near the success that Mozilla ultimately had.
Mozilla’s success had a lot to do with Microsoft practically abandoning internet explorer. IE6 which came out in 2001 was only replaced with IE7 coming out in October 18, 2006. Meanwhile Mozilla 1.0 came out in 2004 which was effectively the perfect time to gain market share.
Not really. Netscape wasn't trying to be Mozilla Firefox, it was trying to be The Internet.