When computers started doing a billion cycles per second, you can shift your whole mental organization to prioritize other things. You can waste a ton of the computer's time rather than waste your own debugging something the user won't even notice.
"50 million cycles" is a meaningless measure far detached from the actual work being done. You're choice of front end framework has almost nothing to do with total CPU use: how the text box looks (rounded corners, drop shadow) has far more impact on cycles overall.
But it doesn't matter. Cycles are not in shortage. CPUs are mostly idle. If something takes less than 16ms to complete, you simply won't notice.
Do you mean "people still use VSCode even though many interactions have unnecessarily high latency" or "people's experience using VSCode would not be improved by the elimination of these latencies?"
Right, everyone will use applications that are unbearably slow when there are no alternatives, and that's why we should not try to make applications that run at reasonable speeds.
You realize that the example you used is the top used tool in it's field and that field is littered with tools that have existed longer and are arguably faster?
You know why VSCode is the leader? The tradeoffs of a little latency that can be annoying but mostly is unnoticeable is acceptable for all the added benefits the editor gives us.