1. MS has changed their ways, and has become an altruist organization which just wants to give developers things of value for free so they might hopefully choose Azure when they decide what cloud provider to run on.
2. MS is embedding themselves in the open-source community in such a way that it's almost unavoidable to make use of their proprietary tools without even realizing it, and they will use that to their advantage against competitors and developers.
It's just hard for me to think that the second possibility won't become increasingly true to the extent that MS gains the leverage to get away with it.
As a side-note, I think MS's marketing for VSCode has been very effective. As an editor, I don't see an advantage over 饾殩潭饾殬潭饾殯潭饾殠潭 潭饾殬潭饾殭潭饾殠潭饾殫潭 less corporate alternatives like SublimeText, and I actually don't like the "install this plugin" spam in the bottom right corner.