Even then, access is still significantly better on a local machine in a VM than it is on a shared server...
You are effectively the only real user, generally speaking. The Gen4 NVME drive and 64gb+ ram on my local system is still better than shared server resources are generally going to be, short of dedicated (ie: expensive) server environments to do the same.
I'm not a huge fan of VM development, generally speaking... that said, my current work setup is Windows + WSL + Rancher Desktop + VS Code (remoting extensions) for nearly everything. My windows terminal default is set to WSL, so it's pretty close to in the box... I can launch windows apps from the wsl environment... the integration is pretty seamless. In terms of performance, if you're stuck on an older Windows version (I am), then you can limit the max memory that the WSL environment gets, similar to a VM... I usually reserve 8-12gb for my host environment and give the rest to my dev environment.
My personal desktop is Linux (Ubuntu-Budgie). My previous job the laptop was an M1 Max, which had faster ram/disk than the windows laptop for the current job, or my personal desktop (which is impressive to me).
In the end, for most things, it's not significant enough to worry about... The aarch macs and i/o have been more problematic than wsl and other x86 environments... I think as rosetta support improves with qemu and docker, it will change and get significantly better.
That said, with VS Code's remoting extensions, I can be working on a remote system nearly as effectively as local anyway... which is how I typically use my laptop. Wireguard to home, vs code w/ ssh to my personal desktop.