It's still way too early to declare it just yet. It's still vastly inferior to their existing separated IDEs. I'm optimistic though.

hopefully not too little too late

There’s not much lock in with VSCode. I could change in a day, and might when this is mature.

Besides having to pay for Fleet, it isn't available as Web editor on Github and Azure, allowing one to develop server based software as in the timesharing gold days.

The plugin ecosystem from VSCode is the only reason I tolerate an Electron powered editor for specific use cases.