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I think the big catch is that they want your project to be open sourced. Otherwise, it sounds great.
If that's a catch, then you're not in the right spot.

This is about fostering innovation, community, and openness on the web. Fundamentally, that's what Mozilla is about: Improving technology for everyone. And so this is a really fantastic opportunity for getting involved, and hopefully driving some cool new stuff for everyone to use.

Stark contrast to startup accelerators/incubators: Everything must be triple-y open sourced. Profiting from the idea is fine but not required (or even heavily encouraged). No equity involved. Emphasis on technical mentorship from Mozilla crew.

Sounds like a program that accelerates your chance of getting recruited by Mozilla to keep working on your project. None of this is a bad thing, it just depends on your particular bend in life. If I was trying to make the next jQuery or Modernizer, for example, I would be bouncing off the walls trying to get into this.

Only code written during the incubation is required to be open source, teams are free to fork it after that and continue onward (with traditional VC funding). However, Mozilla does encourage keeping the source open; certainly open source does not imply not profitable.
Yeah, it seems like it would be considered bad taste if you kept working on the project but no longer open sourced the results.