You can learn more about the Remote Development direction in [0], follow iterations in [1] and read about the steps to integrated the client-only VS Code as new Web IDE into the GitLab DevSecOps platform [2]. I'd encourage you to try the Web IDE Beta next week on Dec 19, and add thoughts, ideas and feedback into this issue [3]. Thanks!
[0] https://about.gitlab.com/direction/create/editor/remote_deve...
[1] https://gitlab.com/groups/gitlab-org/-/epics/7419
This blog post about the future of the Web IDE [0] provides insights on the evaluation and plans, published in May 2022. The remote development direction page [1] dives into all plans, challenges, etc. and also links engineering and product resources (issues, epics) to subscribe to. I'd suggest commenting on the epic with thoughts and ideas [2] - thanks!
[0] https://about.gitlab.com/blog/2022/05/23/the-future-of-the-g...
[1] https://about.gitlab.com/direction/create/editor/remote_deve...
Anyway, with regards to Rust, I was using https://github.com/helix-editor/helix for a bit as an editor. I ran into an issue with keymapping that was pretty basic but still an involved feature and so I set it down, but it is still very functional. A few years and it will be solid. And I agree with you, new offerings will come from Rust that will outcompete.
Vscode (or vscodium) is open source.
You could say the same about the brave browser, it uses chromium under the hood, which is a open source browser engine maintained by Google, a direct competitor of brave. Not only is chromium part of brave's core business, it is what its core business runs on.
So I don't really see an issue with using vscode OSS in gitlab.
The biggest issue I've seen was with the python language server, but even that can be replaced with an OSS equivalent.
I have copilot installed in vscodium. Remote ssh to vscode works, vscode containers work. Everything is working.