> Microsoft may have a dominant position in developer tooling, but they don’t have a monopoly. A well-funded team could create a compelling competitor to VS Code.

I would argue that the best thing to come out of VS Code isn't even "VS Code" the overall environment, it's LSP [0], and MS has given that back to the community such that anybody can use it in a competing editor. I don't really think "VS Code" the product has a "moat" here and (up to now, at least) MS hasn't demonstrated much intent on creating one.

On a personal note I've tried using VS Code many times, but although the features look nice, I find the UI too alien. Luckily, vim has plugins to use LSP, so I can have all of the features I want in my existing editor.

[0] https://microsoft.github.io/language-server-protocol/