I agree with this. But usually you have both. A staging/test environment is nice, but if you have 5 developers and one test env then devs will quickly end up in line waiting for the test env to free up.
Remote debugging is also hard. Much easier when running locally.
The idea is that you have a dev cluster _per developer_. I've ran with something similar way back working for a certain notable Perl shop way before k8s/Docker became popular, and I have to say it has a lot going for it, especially for more complex setups and more annoying database stuff. It was an (on-demand one-click provisioned) _VM_ per service per dev, though, so the biggest annoyance (no code reload, slow fs sync) was nullified by popular preference for either Vim or Emacs — with my current preference for VS Code I'd probably be annoyed by it. Also it's a bit expensive, I guess, but you can stuff a lot of VMs into a single big server.
Remote debugging is also hard. Much easier when running locally.