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I've never used it either, but think it's just a way to not only save settings, etc., but also a way to sync those same settings to multiple computers/devices using their "cloud" vs. just doing what you said (copying ".mozilla" folder) using a USB stick between computers. Like you, I do things the old-fashioned way using hardware under my control and copy either the entire ".mozilla" folder, or just make bookmark backups to be shared between computers.
Not muddying the waters at all in my opinion. Your (and my) way is simple, quick and easy and is not reliant on someone else's "cloud" or the ability/inability to connect to it.
I have never used Sync. In fact, I know nothing about Sync.
I may be way out of my league here and might even be muddying the waters.