Over my career I've been involved in hundreds of contract negotiations, many of them including stuff like software licensing. I've done this work for governments, and corporations, for myself, and for non-profits.
Which is to say, I know what words mean. I know what the legal norms are in multiple jurisdictions, and I know when someone is trying to bullshit me.
I have no doubt that Mozilla think they need this license and privacy policy. I'm concerened enough by the "why" to ditch firefox.