The reason you can't convince me is that nobody has ever been able to explain in clear terms the benefit or the point of using a cloud IDE.
A cloud IDE presupposes excellent uninterrupted connectivity. Guess what? I often work on the move and often don't have that.
I'll admit that keeping Visual Studio service packed can be tiresome but this irritation is vastly outweighed by the fact that I can use it on the move. Likewise Sublime Text, or WebStorm, or whatever. And it's not as if software updates can't be solved in a different way (Chrome, Firefox).
For me the combination of a locally installed IDE with a distributed version control system still offers the best value prop for working portably.
I'm not saying a cloud IDE is always a terrible idea but, after 4+ years of these things, I still don't really get the appeal.
As long as the students had a working machine, they'd be able to get to their projects regardless of whether it was on the machine they used the previous day (without have to deal with git/etc).
In my professional life I would never use these tools.
Which did you use, and how did the students find them in terms of complexity?
Not to mention things like vertical-selection, or multiple cursor modes for column editing, which can't be done at all in any of the current web-based editors which AFAIK are all based on contentEditable rather than a custom renderer like the original Bespin (I think, that thing changed codewords a lot).
Now some of these can be addressed with Electron or similar, but there's a lot of things that are nice to do in a code editor that just aren't compatible with the DOM itself, and need a deeper customisation of the rendering and input management.
TL/DR - it's mostly UX :D
Well... to be honest that's a pretty tough sell. Especially in light of this (reasonably) popular one shutting down with hardly any notice.
As a former IT Exec I don't know of any development Directors who want to trust their critical path development to someone else's cloud based IDE.