The question is how many people would pay for alternatives instead of using VS Code.
I don't think usage alone does amount for anything. Other free offering will not go away and if something would happen, many (including me, a casual Code user) would simply switch back to what we used before, or a new thing.
MS will not manage to extuingish the "competition" because the competition doesn't even compete, they release their editors and IDEs and simply exist.