I remember when the FSF had dire warnings about using the Sun JDK. I ignored it and kept on using Java, and nothing bad happened. The JDK was eventually GPLed, and by then I decided I didn't like Java anymore and moved on to better languages anyway. I feel kind of the same about VS Code. Binary product? Telemetry? Centralized marketplace? Some plugins are closed source? Eh, whatever. That stuff doesn't get in my way…
I wonder did the drive behind people creating open source JDKs have nothing to do with Sun open sourcing theirs? I wonder in an alternative world where Sun locked down Java as hard as possible and sued anyone and everyone, would they not have been bought by Oracle? Are we sure that an editor will be able to displace VS Code in the future, if it's given away for free and so feature-packed? Browsers are another example…
Now- we can talk about how it's a problem that nobody can afford to build something good enough to compete with what these megacorps can afford to develop and give away for free. But that's a different, older, much bigger discussion.