Maybe you can keep the editor local, and have it hide the latency for you, but debugging?
With anything over a few ms latency remote debugging is impossible (or at least extremely annoying). Step over? Wait a few seconds to a minute until the debugger issues one call to get each variable in scope and all the other goodies.
Debuggers assume local environments, we would need new tooling that's latency aware to handle this, in every major language and platform.
I don't see this being good enough for serious dev work in a long time. It will work for some niches though, specially if you're close enough to the datacenter hosting your infrastructure.
In a sense, a local git repo with an IDE, and a cloud unit/integration testing pipeline is as close as we get now, but every once in a while, you need to run at least a little bit locally to be productive.