XZ was never considered to become a compression algorithm built into web browsers to start with. Brotli decoder is already there for HTTP, so it has been proposed to include the full Brotli decoder and decoder API as it shouldn't take too much effort to add an encoder and expose them.
Also, XZ (or LZMA/LZMA2 in general) produces a smaller compressed data than Brotli with lots of free time, but is much slower than Brotli when targetting the same compression ratio. This is because LZMA/LZMA2 uses an adaptive range coder and multiple code distribution contexts, both highly contribute to the slowness when higher compression ratios are requested. Brotli only has the latter and its coding is just a bitwise Huffman coder.
Also, XZ (or LZMA/LZMA2 in general) produces a smaller compressed data than Brotli with lots of free time, but is much slower than Brotli when targetting the same compression ratio. This is because LZMA/LZMA2 uses an adaptive range coder and multiple code distribution contexts, both highly contribute to the slowness when higher compression ratios are requested. Brotli only has the latter and its coding is just a bitwise Huffman coder.