That's not to say this is a good idea or not, but I think all the comments asking "Why would anyone switch to this from VSCode" are missing the point.
It's absolutely a finished product, GitPod is the commercially available (and white-label-able) version, people are productively using this today, including using VSCode addons and writing their own.
> "Why would anyone switch to this from VSCode"
Imagine preparing a Docker image of everything reasonably needed in your dev environment, and then giving your developers one click access to be totally set up with company-standard configuration. The IDE goes from wild-west everyone working their own way, to something that can be supported, where new devs can be brought up to speed in days instead of weeks, something with real consistency.
What this replaced was madness. We could never train anyone up before. We couldn't sit with each other and debug stuff. Agreeing on how things will work is key on a team that expects to do things like pairs programming, even if it means everyone sacrifices a bit of muscle memory.
At the end of the day, after who knows how much effort, this thing looks IDENTICAL to VS Code. So what was the point of all the work, apart from Not-Invented-Here? VS Code is MIT licensed. So what exactly is the concern about one company running it? Anyone can fork it and do whatever they want.