From the iPad perspective this is not actually that different to running code-server.
(code-server is basically the open source parts of this from what I understand, and the back-end impact is really no different at all, except needing to open a port for the web interface.)
I'm not sure whether vscode.dev will be able to connect to my own remotes yet; need to test that!
The main problem is as far as I am aware the same; the browser-side connection can drop quite easily because of the limits of iOS (you can't switch away without losing it).
That is obviously not something even a native version of Lapce would be able to totally avoid, but an iOS native app might have a few more strategies for maintaining background remote connections for a little while (SSH apps do for example).
vscode.dev is still for local development, not remote. It uses browser filesystem APIs to access your local filesystem. Whereas code-server runs on the remote and exposes a web server for you to connect to which serves up the filesystem on the remote.
