Well, I am glad they didn't go the XF route. Many of VS Code features probably wouldn't be possible or imagined without some of the JavaScript oddities.
What I do believe, though, is that MS effort on Razor, Blazor and DotNet Core might signal they intend on creating their own Electron-like product with C# and WASM for a more native-like performance.
On the other hand, I believe the future of development experience is ubíquos hot-reloading, and we shall see a gradual shift towards languages that have some inherent support to it. In this regard, I don't see C# in a very good place.