They're long aware that they should. They made the strategic announcement some 7-8 years back if I remember correctly. Since then they tried to diversify and failed miserably.
Sure enough incompetence is involved but we should also consider how very hard it is.
Making hundreds of millions from a new tech product in the consumer space is impossibly difficult. You're up against Big Tech and a generally very competitive and saturated space where any idea can be easily replicated. And you're up against consumers that really don't want to pay, hence ads.
That said, I do feel Mozilla barely tried and wasted a lot of money on distractions. They're way too comfortable raking half a billion for effectively doing nothing at all: keep the search box pointing at Google.