Microsoft has clearly taken notice. They're already starting to lock down the upstream VSCode codebase, as seen with recent changes to the C/C++ extension [0]. It's not hard to imagine that future features like TypeScript 7.0 might be limited or even withheld from forks entirely. At the same time, Microsoft will likely replicate Windsurf and Cursor's features within a year. And deliver them with far greater stability and polish.
Both Windsurf and Cursor are riddled with bugs that don't exist upstream, _especially_ in their AI assistant features beyond the VSCode core. Context management which is supposed to be the core featured added is itself incredibly poorly implemented [1].
Ultimately, the future isn't about a smarter editor, it's about a smarter teammate. Tools like GitHub Copilot or future agents will handle entire engineering tickets: generating PRs with tests, taking feedback, and iterating like a real collaborator.
[0] https://www.theregister.com/2025/04/24/microsoft_vs_code_sub...
[1] https://www.reddit.com/r/cursor/comments/1kbt790/rules_in_49...
I always felt that cursor and windsurf should be just extension to vscode instead of a fork. Was there some missing functionality is vscode that was missing? Is it still missing?
There are some extensions that work in this way and allow to use multiple implementations depending on task at hand without any long term commitment.
I feel like such fragmentation is by artificial just to lock users in single ecosystem.
For example, Github only autocompletes based on what file you have opened in the current editor's tab. Windsurf indexes your entire code base and seems able to autocomplete based on what other files you have in your project. Autocomplete also spans across multiple lines and open tabs.
Windsurf's agentic tool (Cascade) can run terminal commands and read the output without opening a terminal like copilot. It can undo the agent's actions easier than Copilot. Though I think Cursor is superior in that regard, it can undo multiple checkpoints.
Still evaluating Windsurf but it, Cursor, and Claude Code are all more sophisticated than Github copilot at the moment. I'm sure copilot will catchup but by that time the other tools may have already iterated ahead.