I The decision to go with a shortened F150 called a Bronco in '78, was even more puzzling. The '78s were good vehicles but not a replacement for EBs. Ford's Blazer was a whole different class of truck, that could have been offered along with the EB. I remember fuel economy was a big issue in the '70s and the '78 was not the truck for high MPGs. Jeep didn't make the same mistake. CJ5s were made through '86.
Not the least bit puzzling.
Ford wasn't out to build the world's best off road vehicle, they were out to build something large numbers of John and Jane Q. Public would buy. The Blazer proved to be that "Three Bears Just Right" size and it had everyone scrambling for parity. Sales of the big '78 Broncos trumped the previous year EB by more than four times. The EB was too small for most people in that day, which is one reason it didn't sell all that well (relative to other Ford products and the Blazer, or even the Scout, which had gained some ground). I have read bits and pieces of the internal sales and marketing documents from most of the companies selling SUVs and, in this era, bigger was the push. It was all about money and the way the Ford execs saw it, there wasn't money in the EB. In just two years, sales of big Broncos numbered 3/4 of the number of EB for the previous 11 years. Not making any judgements about what was the "better" product, just highlighting the motivations of FoMoCo. Making money. The market had evolved past the point where the EB was a viable big-numbers product with enough profit built in. The profit margin was helped by the fact that the EB was more or less a stand-alone in the lineup. The big Broncos shared a lot of parts and engineering with the light trucks, which lowered costs and increased profit margin.
The same evolution happened going from the two door SUV to the four-doors. Four doors in... two doors out!
Discussing Ford and Jeep in the same thread is really a waste. They were on totally different planes of existence. What worked for one, didn't for the other due to market bandwidth and corporate size/temprement. Jeep was fading fast and probably would have died with CJs as the flagship. But for the 4-door Cherokee XJ... which was a very big deal and sold in numbers Jeep had never before achieved... Jeep may well have died.