Yup, kudos to MS for coming up with it and standardizing it.
(the following is just what I think, I have no hard knowledge on the matter)
Language server still limits what an IDE can do. E.g., IDEA can do complex large scale refactoring and analysis over a codebase. If you're brave enough, you can write your own language analyzer that converts your language into structures IDEA understands, and you can get (some) of the same benefits. But it's a lot of work.
IIRC, language server can only provide rather superficial type information and autocompletion (which is still way more than many languages had before).