Their stated goal is to improve on the frontier models. It's ambitious, but on the other hand they were a model company before they were an IDE company (IIRC) and they have a lot of data, and the scope is to make a model which is specialized for their specific case.
At the very least I would expect they would succeed in specializing a fronteir model for their use-case by feeding their pipeline of data (whether they should have that data to begin with is another question).
The blog post doesn't say much about the model itself, but there's a few candidates to fine tune from.
First, most of the major players already have their own models or have been developing them for some time. Your take feels a bit reductive. Take Windsurf pre-acquisition, for example, their risk was being too tightly coupled to third-party vendors. It’s only logical to assume that building task- or language-specific models will ultimately help reduce costs and offer more control.
As for the other point: in my experience, trying to fully leverage LLMs actually makes me more prescriptive in my designs. I spend more time thinking through architecture and making my code modular, more so than when I wasn’t using an LLM. I’m sure others may design less or take shortcuts, but for me it’s pushed the opposite behavior. Is it the “right” way? I’m not sure, but I’m enjoying it and staying productive.
> you can't do what many of us do: have three subscriptions and use each for its best
I don't think has anything to do with whether or not AI is in the editor so much as it is the difference between a subscription (Cursor) vs. a BYOK approach (VS Codium + Cline, Zed, etc). Most BYOK plug-ins will let you set up multiple profiles against various providers so that you can choose the most optimal LLM for the given problem you're trying to solve.
Note: I'm not saying that's a bad thing! It's significantly more convenient for many use cases, so I can see why it's a default. But the incentive being created is to accept first, analyze later.
Then the were the the MS Access and Excel amateur efforts. I worked at a company that for years had a very profitable business replacing in house MS Access spaghetti with our well designed application.
Aaaand..... here we go.... deja vu all over again....