100-200 developers probably roughly costs on the order of 25-50 million a year (assuming a made up number of 250k fully loaded cost with benefits and taxes, which might be lower or higher than their average, idk. This number seems almost too conservative to my gut). From this back of the envelope math, I don't think the royalties business is enough to support the development cost alone.
> Do they all need San Francisco salaries to develop a good browser?
If you don't want them to leave to work on safari or chrome, probably? This experiment was more or less tried by opera, right?
Brave gets away with a lot lower overhead by bascially piggybacking off chrome. Opera similarly gave up selling their own browser engine and cut their development teams while switching to another wrapper on blink. Firefox could become yet another skinning of blink and chrome code, but it's not clear to me how that's helping them with being "Google's bitch in a more intentional way".
I think there are problems with Mozilla's side project expenditures, there is definitely some bloat, and they have had some expensive failures like Firefox phone. However I don't think Mozilla could have survived without Google's funding and people vastly underestimate how expensive quality software is.