They should concentrate on developing the browser and get out of political activism entirely. Use the rather large amount of money they already have as an investment fund to finance a slimmed-down operation while also soliciting donations from users and some select companies. Ditch the large administrative staff they gained during the Baker years, swap some of them out for developers. They should not try to be a PAC, there's enough of those already.
Wouldn't this be a case where the iron law of bureaucracy applies? Meaning that the people who are already there and are invested in their 'mission' would resist any kind of reform of the organization because the primary task of any such organization is protecting itself from outsiders?
Yes, but only because the Mozilla Foundation has the same problem. If it was just the corporation then the foundation could decide to replace it entirely.