I was there before Mozilla existed, and I respectfully disagree.
To answer your question about how it's bloated since 1.0, please consider this: which updates in the past year or so have not added an extra icon to the main toolbar and/or come with a splash screen about the update that primarily advertises a new feature that isn't a core part of the browser and would previously have been handled with an add-on (if at all)? Why is there an "Apps" entry on my "Tools" menu now? Pocket? Hello?
Meanwhile, quality seems to have dropped significantly since the rapid release schedule. There are currently several sites I visit regularly -- as part of work, mind, so these are professional business sites not bleeding edge web geek blogs -- that will crash Firefox. I literally have to fire up another browser to use them, and that could be IE or Chrome or even Safari on iOS, so it's not that someone has written an IE-only site in 2015 or anything like that. Of course it's particularly annoying with Firefox because unlike every other major browser for many years, taking out one tab in Firefox can still take out everything else as well.
Perhaps instead of trying to be all things^W^WChrome to all people, they would do better to go back to their roots as the simple, expandable browser the AC mentioned, and perhaps focus on the robustness issues with plug-ins and cross-tab contamination that have plagued them for so long. They might not take over the entire Web that way, but at least they'd still be the best choice for a significant part of the market instead of slowly drifting into obscurity on their current course.
I really hope they do, because the two reasons I still tend to use Firefox by default on most PCs are the add-on ecosystem and my general distrust of Google and more recently Microsoft. Mozilla seem to be going the wrong way on both fronts right now.