Code sits on our laptops but live syncs to the remote services without requiring a Docker build or K8s deploy. It really does feel like local.
In particular it lets us do away with the commit-push-pray cycle because we can run integ tests and beyond as we code as opposed to waiting for CI.
We use Garden, (https://docs.garden.io) for this. (And yes I am afilliated :)).
But whether you use Garden or not, leveraging the power of the cloud for “inner loop” dev can be pretty amazing with right tooling.
I wrote a bit more about our experience here: https://thenewstack.io/one-year-of-remote-kubernetes-develop...