How will it create confusion? Nobody types moz:// in regular usage, so this only effects you if you are specifically looking for an easter egg or something.
Same here, although perhaps that's because for some unknown reason internally I've always said dot-dot-slash-slash for :// so it's odd trying to read it as 'ill'. I don't expect the protocol logo will appear in print form in text very often though so it's not an issue.
"REALLY ought to register "moz" with IANA as well. Otherwise it might pop up as a "real" protocol declaration in the future and we might have a conflict. We can just reserve the prefix so that it's not available for general use. "
But it's just marketing. Marketing "decisions" change all the time, and the approaches are discarded forever.
And we all have one more technical debt.
Let the marketoids do what they do, just keep them as away as possible.