Lots of academics in distant fields are unaware of arXiv, and even academics (like me) who use arXiv daily and host their preprints there don't think of it as any more than a place to store, catalogue, and retrieve papers.
Look at all the ways in which arXiv is (like any institution) perpetuating and expanding itself: https://blog.arxiv.org/
Look at these extra things arXiv is doing (including commercial integrations): https://info.arxiv.org/labs/showcase.html
I've been gratefully using and contributing to arXiv since 2008, and I hope it continues to be the incredible resource that it is. I think your take is naive and that even great institutions can end up like Mozilla.