> entirely dependent on Microsoft's goodwill to continue developing VS Code in the open.

The premise of many open source licenses, including MIT, is that the user is _not_ dependent on the developer. No matter what MS does, the latest pulled version of VS Code will remain working and available. MS could license future VS Code versions under more restrictive licenses, however the Cursor devs can continue to use and themselves develop the code they already have.

To be clear, by "the user" I'm referring to the Cursor devs. This is the terminology of many F/OSS licenses.