Because writing a whole OS from scratch competing with giant companies and having to somehow magically go from 0 to a million apps (while being unpopular due to the few apps) is a good place to be in?
Instead, they could have gotten all the Android apps and the popularity of Android essentially for free.
It's even possible they could have overtaken Google and became the effective steward of the Android platform, since Google doesn't offer a version that can be installed by users and also doesn't offer their version to OEMs with no strings attached.
Again, they still can do that now, since there still isn't a version of Android that runs on any phone other than LineageOS, which is relatively underfunded.
[obviously what Mozilla would gain from this is market share for Firefox for Android]