And why did Netscape turn into a "piece of shit"? Because Microsoft used their considerable monopoly power (bullying OEMs out of preinstalls, bundling IE with Windows,...) to make it impossible for Netscape to build a business around making a better browser.
The stagnation and backslide started circa 1995-1996. IE was barely a blip at that time. By 1998, Netscape was basically useless and their share was just starting to drop below 50%.
If you look at timelines instead of listening to hysterical lawyers, the truth becomes clear. If you listen to the people who were actually at Netscape during this time, it becomes even clearer. They were utterly lost in the woods before Big Bad Microsoft ate them alive.