It is good to see that Magit is appreciated by non-emacs users (or even ex-emacs users)
To see other editors or IDE having their own magit-inspired add-on and/or extension just shows how well designed magit is to get such worthy of respect.
I do appreciate VSCode provides support like this even for Magit. I would not be suprised if other text editors or IDEs support them as well like NeoVim or even JetBrains.
While the functionality is likely to meet the needs of many, I doubt it will come close to Magits functionality in emacs.
Emacs is so expressive. It not just magit.. is that magit has the power of emacs (and other bits in emacs has the power of magit)
I doubt VSCode provides this flexibility. Perhaps, for many, dont care or need it.