I think beginner programmers like the fact that they can just open one app and the AI chat box is right next to their editor window. Other than that, I agree that it's pretty silly to maintain a whole IDE just to attach an AI chat box to it.

Now that there's MCP, the community will out-innovate anything a single company can do in terms of bolting on features. It's easy enough to get all the LSP integration and stuff into Claude code.

So it all comes down to model differentiation. Can cursor compete as a foundation model creator? Maybe, but even so, that's going to be a very tough market. Margins will be razor thin at best. It's a commodity.

Anyway, the last thing I would want if I were them is to keep worrying about maintaining this IDE themselves.