Zed is trying to position itself as a next gen hackers editor. Text editing with lessons learned from the multitude of experiments in the space. A flagship feature that is online only and requires me to trust a third party is a deal breaker to many. For instance, my employer would not be pleased if I suddenly started sharing code with another.

Take the AI out of the conversation: if you told your employer you shared the codebase, that’s an insta-fire kind of move.