That is no longer true - you can use remote kernels on your own compute via colab: https://research.google.com/colaboratory/local-runtimes.html
There is also the same feature in CoCalc, including using the official colab Docker image: https://doc.cocalc.com/compute_server.html#onprem
Cocalc also supports 1 click use of vscode.
(The above might not work with runpod, since their execution environment is locked down. However it works with other clouds like Lambda, Hyperstack, etc.)