I think that using cloud environment for development is very promising. I tried it with linode 8GB instance and the compilation speed of scala project was the same as on 2012 MBA. The problem is that you usually want some gui setup for IDE and things and you need to tune vnc to the limits it can offer. Docker didnt quite work for me, due to the ports hell or, probably, my wrong hands setup...
The trend over the last few years is to work locally and push changes through git.
Working remotely on a server gives you cloud abilities because you can easily switch devices and continue working.
Having a cloud service provide the gui or editor is an option available now. But to have a local editor with ssh means you can work on your phone using a proper mobile editor you can run a full ide on your desktop or use vim directly on the server.
The security and privacy of your code remains in your hands. Best of all worlds.
I have a dedicated server in a datacenter somewhere that has essentially become my main dev machine. It can only be connected to through a VPN that I built/manage. It's a fantastic setup, honestly.
