I don’t think Mozilla running a Mastodon server is losing focus. The ethos of Mozilla and the Fediverse have a lot of overlap, and Mozilla should desire to have a foot in it.
An official Mastodon server is also a useful platform for marketing and outreach. In contrast an organisation claiming to be all about privacy and open source retreating from a social media platform that embodies those is not a good look.
We are going to need much stronger image rights for individuals in the AI age.
There’s no way to stop the technology itself (although current development may plateau at some point), so there must be strong legal restrictions on abusing it.