I don't know why I'm trying to justify my choices. lol. I'll stop after this post.
For the record, the machine isn't remote in the sense that it's outside my house, only that I'm essentially using my desktop and laptop as a thin client. The Linux box is right next to my desktop. I can just plug in a screen, keyboard and mouse and I'm coding fully locally. It's all just semantics at this point now though. It works for me and I'm not changing it unless I find something better.
I have no idea what you're getting at. It's no different to developing on the machine itself. All projects are in GitHub and that machine has better and more frequent backups than my desktop and laptop.
I use it because of the Remote-SSH plugin. I have a Windows desktop and a MacBook but all my development is on Linux (PHP and Python mainly, some C++ and a little Java).
My desktop and laptop only have VS Code and the Remote-SSH plugin installed. All other plugins are installed on the Linux machine and they use the tools (git, gcc, make, python, php etc) that are already on the Linux machine so no extra software is needed on the desktop and laptop. Intellisense and the debuggers worked with very little configuration required.
There may be a better editor or IDE that can do all of this but VS Code works well so I'm not actively looking for it. That doesn't mean that I'm not open to changing to something better though.
Any given program, when running, is obsolete.