By using sshfs (doesn't require any extra setup on the server
side) you don't have to use an SFTP-capable editor.
I know, but that isn't really the point at all. Whether I need to start one program or two in order to make the connection isn't the issue (but I sure prefer it in one package). My post is about avoiding latency when working online with a retrieve-edit-store workflow as opposed to transmitting every single keystroke and screen update over the wire.
And yes, as you already observed, I stand corrected on the point of syntax highlighting.
I edit files across a satellite connection on oceanographic vessels a few thousand miles away at sea (often 1000ms+ pings) and sshfs is wonderful
and as the other poster points out, syntax highlighting working fully requires correct terminal settings