I was pretty irritated when I noticed that myself. I'm guessing that there's some form of attack or class of attacks that this is designed to avoid (e.g. IIRC a webpage opened from a file:// URL can have Javascript access files via file:// as well, and I imagine theoretically could upload them somewhere or something), but it sure is goddamn obnoxious.
My guess is that you can probably fire up a local HTTP server on your phone and view it via that. I don't think that Android phones set up a firewall by default, so have it listen on a loopback address, like 127.0.0.1.
Based on this, you can use a file manager to share the HTML file with Firefox.