Note that is affects only U.S.-based users of Firefox. Good move for both parties, and I hope they can struck deals with regional search engines in other locations as well. Diversification is good for everybody.
I too think that diversity helps: google has a monopoly in search, and a push for yahoo in search queries may even help them make the search engine better, and maybe they will become a much needed google competitor.
Mozilla and Google have been "frenemies" for a while. Now that Firefox is no longer supporting Google's search monopoly, I wonder how Google's search traffic (and stock price) will look in six months. I think Mozilla's decision is good for increasing search competition.