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No, the other way round: People who support Firefox fight the dominance of the Chromium engine. If anything, one engine dominating is bad for the Web. (There is also Safari, but for Apple OSes only.)

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If Firefox was bad for Google then would Google be paying them 500m a year?

You could argue they do this in order to keep antitrust from looking at chrome too closely.

Google paid Firefox for search before Chrome even existed.

Yes, and at that point it was because Firefox was the second most popular browser. Motivations do change.

Of course but their reasoning will have changed over time. Because Firefox's market share has changed tremendously as well.

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