Earlier quoted context omitted.
“Please don’t do it like a 4x4 truck, do it proper, like a bicycle” — there is some overlap between those things, but for people who are actually making full use of the former, the latter is not a useful suggestion
I'd suggest that the people who make "full use" of vsc-over-ssh are satisfied with vscode, so it would be unwise to target the full featureset. More generally, targeting another project's complete featureset is often a great way to get mired down in the wrong details. Unless you can afford to do a proper cleanroom -- then, you'll be able to at least match the performance and useful abstractions used in the original.
Wha...? This is a killer feature. I'll put up with a lot of crap to use it. That doesn't mean I wouldn't switch to something nicer in other ways if it also offered this killer feature.
It's hard for me to understand why there are IDEs under active development not trying to offer this feature. It is so much better an experience to have the network split into the proper place: between the UI and the heavy computation. Having the UI too far away undoes whatever responsiveness work has been done and more. Having the heavy computation too near means it's hard to develop and test the far environment, take advantage of its compute, etc.