I actually disagree, developers doesn't need to run the whole code on the local env. In my company we use development docker cluster where we keep instances of all of our micro-services and they are exposed (via vpn) to the outside world so you can call them by domains. When you work on the logic that e.g. would affect 2 micro-services you can just set-up 2 of them and make remote request to the dev env for everything else. I don't see any reason why you should run all of them on your computer.
Yeah that's a good point. When the system is too big there's no way you can run it all locally. The angle I'm coming from is an application that's fairly new and still small and is changing rapidly with lots of cross-cutting changes. We're paying some heavy microservices taxes with development, testing, deployment, and performance, but not at a point where we see benefits yet (IMHO).