I was impressed by the low latency (at least as of a few months ago). If you make a web app right, it can be faster than a resource-hogging local IDE!
I don't use it myself every day because I've already been using vim/screen/bash for 15+ years. Those are my lightweight REPLs.
But if I were advising someone to code, and they wanted to skip the dev env, I would probably try repl.it. They also have impressive concurrent editing facilities in any language.
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I also think the question is malformed, because I would hesitate to say there's any "single problem" in software development. It's all death by a thousand paper cuts.
The "dev env" problem is real, but it's really a problem with 100+ different tools. It's an architecture/ecosystem problem.
repl.it has some creative solutions to these problems, though it's still a ton of work. I think they are doing great but it's not going to solve all problems.
For example, another popular dev env is for data science or machine learning researchers. RStudio is doing some good stuff there, and there's Google colab, etc.
Software development is very big diverse and it's hard to imagine one solution cutting across all of it.