1) The most useful thing about Cursor was always state management of agent edits: Being able roll back to previous states after some edits with the click of a button, or reapply changes, and preview edits, etc. But weirdly, it seems like they never recognized this differentiator, and indeed it remains a bit buggy, and some crucial things (like mass-reapply after a rollback) never got implemented.
2) Adding autocomplete to the prompt box gives me suspicion they somehow still do not understand best practices in using AI to write code. It is more crucial than ever to be clear in your mind what you want to do in a codebase, so that you can recognize when AI is deviating from that path. Giving the LLM more and earlier opportunities to create deviation is a terrible idea.
3) Claude Code was fine in CLI and has a nearly-identical extension pane now too. For the same price, I seem to get just as much usage, in addition to a Claude subscription.
I think Cursor will lose because models were never their advantage and they do not seem to really be thought leaders on LLM-driven software development.