It's not only an awesome technical achievement, but it has also so much potential to be useful. And yet, something at the back on my head is screaming: WARNING! I have the intuition that, on the long run, using more and more tools that are not on your own machine will create a dependency on systems big companies control. And something tells me we are going to pay for it in the end. So I'll stay away. Maybe I'm gettin…
This is running on your machine though. The browser downloads vscode as a SPA-style thing, and runs the editor in the browser sandbox, and can edit local files/directories.
Good thing it's running on your machine and you can see and control when it updates.