> Can cursor even do anything that vscode can't right now?

Right now VSCode can do things that Cursor cannot, but mostly because of the market place. If Cursor invests money into the actual IDE part of the product I can see them eclipsing Microsoft at the game. They definitely have the momentum. But at least some of the folks I follow on Twitter that were die-hard Cursor users have moved back to VSCode for a variety of reasons over the last few months, so not sure.

Microsoft itself though is currently kinda mismanaging the entire product range between GitHub, VS Code and copilot, so I would not be surprised if Cursor manages to capitalize on this.