However, I think there was also the psychological factor of Mozilla's reputation at the time as an open-source quagmire. The Netscape 4 code they had inherited was deemed unmaintainable, and so Mozilla started over with a rewrite that many thought was too complex and tried to reinvent everything under the sun (e.g. it contained a version of Microsoft's COM). Mozilla turned out fine eventually, but back in 2002 this wasn't quite so obvious.
Not exactly. There's a reason WebKit saw wild adoption by all sorts of projects, while Gecko adoption stagnated. The Mozilla codebase is still too complicated for most people.
If I want to use WebKit in a new project today, I can find a ton of people online who have done so in the past and use their experience to get me through it. If I want to use Gecko in a new project, I will have a considerably smaller amount of outside experience to lean on.