In my opinion, the greatest benefit of using Vim, Emacs or even Acme is how easy it is to create custom tools for your problem at hand, even for one-shot tasks. VSCode is very capable, but it can't compete in this regard (and maybe that's what they want and maybe it's a good call as well).
I've tried using the vim plugin for VSCode many times, and every time I come back to it, it just feels... off? The actual vim keybindings work fine when you're editing the document , but I find that when you want to use some of the other features of the editor, it becomes a bit more tricky/hacky. If MS made an official set of vim keybindings that had better editor support, or even if there was some sort of kill switc…
A word of advice, though, if you plan to check this out... I'd recommend maintaining a separate neovim install specifically for the VS Code integration and make sure that it has fairly basic vimrc with limited plugins. You have to take care with this because (neo)vim plugins don't always play nicely with VS Code and vice versa.