Recently the Mozdev board members have come to the conclusion though that the needs of the community have changed and project hosting is no longer a problem for developers. A number of free sites (github, Google Code...) do a great job with this and the Mozilla Add-ons site has evolved to become the hub for extension developers.
There is a small, but sizable amount of add-on developers that will never move to AMO, and appreciate that MozDev is there as an alternative. While hosting can be done elsewhere, it wouldn't be under the Mozilla umbrella, and would be harder to find. MozDev is a good aggregator of projects.
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