Cursor does add value but it's just a thin layer on top of VSCode so companies could just build that in-house and don't need to acquire. There's no moat there.
Arguably they have the strongest product moat, and I wouldn’t be surprised if they beat OpenAI in a vertical coding model from that. Easy for them to have users generate evals and have model product feedback loop here.
Zed tab is a lot worse in comparison (partly because it’s slow)
Intellisense has done this for ages. A decade at least.