A cloud-based coding environment doesn't really make it easier to debug your code in the cloud environment it would be executed.
A development environment and a production environment are inherently different in vast ways.
So even if your development environment is in the cloud, you still need a way to package your code and transfer to the environment similar to where it will run in production (whether it's bare metal, virtualized, container, or managed (e.g. serverless))
What the cloud providers are working on is making it easier and faster to continuously package transfer your development state to your prod environment.
But whether you're coding in a browser or locally it doesn't accelerate the deployment path.
I feel like this is exactly where Microsoft ist aiming for with VSCode, Codespaces etc:
1. Give away the Code Editor as Open source, but make important Plugins (Python Development, Live Share,...) closed source.
2. Make the life for developers easier/ more productive by integrating cloud offerings. Oh, you're starting a python project? Use our code space for development and click here to automatically deploy it to Azure, everything correctly configured. No need to deal with Ops.
3. Make $$$ with Cloud services and enterprise tooling.
A development environment and a production environment are inherently different in vast ways.
So even if your development environment is in the cloud, you still need a way to package your code and transfer to the environment similar to where it will run in production (whether it's bare metal, virtualized, container, or managed (e.g. serverless))
What the cloud providers are working on is making it easier and faster to continuously package transfer your development state to your prod environment.
But whether you're coding in a browser or locally it doesn't accelerate the deployment path.