I've been using VSCode Remote since it came out and it is indeed a godsend. I use it to develop from one trusted machine on my own LAN to another trusted machine on my own LAN and I want the experience to be as similar as possible to developing locally, which it is, and which is why I appreciate it.
I'm not surprised people trying to provide remote code editing to non-trusted clients are freaked out by it, but it is a great tool when operating in a trusted circle.