I doubt many people sshing into a box using vim will choose visual code. There might have been some people using vim for daily development who switched but probably not many
Probably overkill for occasional remote file editing (it'll run some server component on the remote machine), but pretty good for more involving remote development work.
Actually I do just that.
With the remote development tools I can open a remote folder in vscode and edit from there. And when I start terminals, they're going to start a shell on the remote linux box.
Everything via ssh.
I have once .vimrc configured for all the languages that I use/know. Whenever I work with a new client. I pull that .vimrc on the allocated machine. Run PluginInstall and in minutes I am ready to go!
I think the plugin writers are either shoe-horned by VCCodes lack of plugin capability or they are basing their work off some other toolings expected behavior and it doesn't "sit right" with how I work.