I don't think the cloud (someone else's computer) is the best solution. The sanitation problem can be mitigated by compartimentization but the cloud aspect also adds brittleness and new attack vectors.
Why not set up proper containers (or VMs) locally? And why not wait a little till local LLMs catch up?
Maybe just a personal itch, but having your dev environment elsewhere feels so gross to me..
That is the problem. You outline perfectly how a developer sees the situation.
On the other hand ephemeral cloud environment with proper security controls makes a lot of sense if the goal is to isolate and control.
If everyone was following the protocol we wouldn't have had the problem to begin with.