Also break out of the link in the normal editor view so typing can commence.

This is a "CKEditor" bug on Firefox, and I can reproduce it on their latest demo:
http://ckeditor.com/demo
I couldn't see any open bug report they have about it, but I did see old ones from years ago that are closed.
You may want to report to them, but we'd go crazy trying to track little bugs like this - so our policy is to just maintain CKEditor with bulk updates from time to time.

I put CKEditor in quotes as it could also be a pure firefox bug. The WYSIWYG functionality ultimately is a web browser feature that full-featured systems like CKEditor build onto.

You can set text though. Type the text first, select it, then click the link button.

Okay, doesn't concern me enough to post a bug report and it might be Firefox as you said. Yes, I know you can type the title then set the link, just found it odd that with all the options in the link popup and there isn't one to set a title for those who may click to add the link before writing the title.

Yeah, certain things in CKEditor is a bit clunky. They're currently in the process of doing a complete ground-up rewrite - they've a lot of investment, and it's going more of a "Silicon Valley" direction in terms of the money going in and the expectations for it.