I don't think Firebase is really at fault here—the major issue they highlighted is that the deployment pipeline uploaded the compiled artifact to a shared bucket from a container that the user controlled. This doesn't have anything to do with firebase—it would have been just as impactful if the container building the code uploaded it to S3 from the buildbot.
Agreed. I recently stumbled upon the fact that even Hacker News is using Firebase for exposing an API for articles. Caution should be taken when writing server-side software in general.