I agree that VS Code is easier to edit code in, but Emacs is easier to program and extend. Ease of use simply isn't why people use Emacs and I think that at this point it would be hard for it to ever compete with VS Code on that front.
VS Code is like the Java of text editors. It relies on a universally understood and accepted model of editing text (non-modal, leveraging the mouse heavily), one that is familiar to all users, even those who might prefer a more idiosyncratic and keyboard-driven interface. This is analogous to how Java facilitates a certain style of OO programming that is familiar to the vast majority of programmers, even those that may prefer and see value in other, less popular / accessible modes of programming.
By comparison Emacs would of course be the Lisp of text editors. One could try and make Lisp as accessible and nailed down as Java, after all its extreme customisability lends itself to that, but at that point you'd just be writing a poor man's Java instead of Lisp.
This is not to say that Emacs can't or shouldn't be made easier to use, just that I don't think its survival depends on it catching up to editors like VS Code which I perceive as being for a different purpose altogether. I do, however, somewhat suspect that the crucial difficulty of Emacs comes from its messiness, from the huge number of people writing interesting extensions in it, and how they don't always quite play nicely with each other without a bit of glue code.
I'd love to be wrong about that, though, and one day get the best of both worlds.