I think Mozilla's announcement makes their reasoning fairly clear:
https://groups.google.com/forum/#!topic/mozilla.dev.embeddin...
My summary is:
- The old embedding infrastructure was difficult to use and expensive to maintain
- It was also a technical dead end
- Better embedding infrastructure depended on complex architectural changes to Firefox
- Firefox is Mozilla's bread-and-butter, in terms of visibility, influence and revenue
- Mozilla has ambitious goals and does not have infinite resources
Forget for a moment that we're talking about Mozilla, Firefox and Gecko embedding. In a different context, what would you do?