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That’s fair, but I get the feeling Waterfox wasn’t very profitable for them to begin with.
I personally use it because it fills the very specific niche of re-enabling support for the legacy add-on format by default. You can do this in Firefox and other derivatives, but it’s kind of a pain and it’s easily undone by updates. I don’t know of any alternatives that do the same thing.
Tab groups like in the reply below, but also a number of other things such as a fully functional revival of DownThemAll (the webextension version still isn’t as powerful), and a number of other useful addons from here.
Plus, I like to write my own complete themes, and it’s far more convenient to package them into installable XPI files than it is to just use userChrome.css, since they can be easily distributed and updated automatically.