Their low end device looks similarly specced, so I'm a bit worried about how it will come off. Haven't gone through loading up the latest builds so perhaps performance has improved a lot.
Before Android 4.* (especially 4.1 and Butter) I think there was room for another competitor in the market, but I'm having a hard time believing FirefoxOS is going to be able to make significant inroads.
Android has finally grown up and contract-free low end phones are now available for $60. I would expect the 2013 ultra low end handsets will be 4.* which is really going to be a game changer.