Vscode remote ssh is clever, to be clear, and in many cases is ideal. But it seems to me that they really need to ship an out-of-the-box extension that does edit over sftp with local caching as a fallback option. Notepad++ does this and it's great.
I know that there are a bunch of 3rd party extensions that seem to do this but most seem a little bit janky as you dig in to it. This needs to be an official Microsoft extension.
In general, I don't want my IDE running or depositing anything on my servers that I haven't explicitly asked for, especially if a main goal is to simply edit config files easily via a familiar editor application. Basically a 'leave no trace' philosophy (for the sake of predictability, consistency and control, not for any nefarious reasons).
(that said, remote ssh with vscode server is fantastic - but only when I actually want it).