I will continue to use Firefox, even after changes like this. In fact, Mozilla's reason why one should use it is my reason to use it. Firefox is independent, and not owned by another company that has huge control over the Web, such as Microsoft or Google. So how many browsers have copied Firefox's way of doing certain things. I feel it is inevitable.
No, it does not seem Firefox with be able to compete with Google Chrome. Google Chrome has done an excellent job of marketing and getting into schools and public places, leading to more widespread use in homes and businesses. Google also has a great deal of name recognition and usage through the search engine that's been around forever.
Ever since Google released Chrome a few years back it has been my main browser on every single computer, tablet, or smartphone that I have owned since. Even most of my friends use it. It's sleek and you can customize your own home page. I used firefox before I used Google Chrome and I find Chrome to be better and I most likely wont ever switch back.
Google is a household name all over the world now. Google is a massive, well-respected company that has so much name recognition and money that it can hire the best of the best to constantly develop improved technology. This advantage alone means that Firefox doesn't stand a chance against Google Chrome as a browser.