^^Very good point.
On OSX with MacFuse and SSHFS, I've done plenty of remote work before on LAN servers and "internet" servers. It definitely works, but is slow. But for being able to open up a "local" file in Vim/text editor and then save it, the only time you are hitting the network is during the save and that can be slow.
Transmit 4 integrated this functionality into their FTP client, auto-mounting of SSH connections, but it definitely seems more crashy than MacFuse to me.