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Linus Torvalds (Git was originally created by him) seems to be actively contributing in GitHub for the Linux kernel repository (also created by him): https://github.com/torvalds/linux Anyone has seen his position on this topic?
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"Not being reliant" does not mean "newer use it no matter what".
To break reliance with GitHub one can setup a tool like https://github.com/RalfJung/git-mirror
To keep a copy of the repo somewhere else.
By doing so, you'll the upsides of both worlds: actual stability of GitHub (I mean, now downtime and no problems with rate-limits/spam) and independence of self-hosted git server in the (extremely unlikely!) event of GitHub blocking your project.
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Big corporations are not monoliths, despite them having an overall singular personality. I believe that vscode was a sincere attempt, at least in the beginning. While based on electron which was originally developed for Atom, vscode was always much more performant than atom.
But when it did gain a lot of developer attention, MS's true nature took hold and gradually converted it into the walled garden we see today. It was more subtle in the beginning - a few useful extensions were proprietary and wouldn't work on non-MS builds of vscode. It was like a gentle nudge to the developers to migrate to their opaque proprietary builds. Of course, we have seen that before, haven't we?
As an aside, if you like vscode but hate the manipulation, you should give the Eclipse Theia editor [1] a try. It's an almost complete reimplementation of vscode and is compatible with the extensions from OpenVSX. I believe that they have fairer alternatives for collaborative editing, etc. At least, they will spare you the manipulation.
[1] https://theia-ide.org/