Not a firmware issues, more like a ROM issue (even though the ROM is on the HD.)
Remember the classic OS required OS, system file/utility changes, and ROM changes every time the hardware changed.
Once Apple froze the OS, any meaningful hardware change broke the OS.
Which is why the FW800 (and the USB move to the PCI bus) broke the OS 9 booting on PowerMacs, and why DDR RAM and the changes in the replacement Integrated North/South chip broke it in everything else -- the harware changed.
OS 9 could have booted on machines after this if people had written ROM patches (and openfirmware enablers) -- but the talent that used to get the old OS's booting on old machines had basically moved on.
The FW800 PowerMac would have likely been easy for them, the DDR Intrepid machines would have been rather difficult.