Why can't you just use a "live" development environment in Firebase?
Obviously this isn't practical for some cloud services due to cost (AWS Redshift is the first example that comes to mind), but I don't see this being an issue with Firebase. If a company is paying six figure salaries to their developers, surely they can afford to give them dev environments on whatever cloud provider they use.
Requiring an internet connection doesn't seem like it would be an issue either. Who in 2021 is building web apps with no internet access? I can tether to my phone practically anywhere, and even when I'm on a flight I have Wifi access.
The product I work on uses a few live AWS services in dev, and for the past 5 or so years everything I've worked on has needed some kind of internet access to run. I can count on one hand the number of times this has been an issue. Dev/Prod parity is a good thing in my books. It's been more common for me to run into issues on prod due to slight differences in how things work between running things on my MacBook and on AWS, not just due to services emulators being different to the real thing, but due to intrinsic differences between running things on a MacBook and on remote Linux servers (even with docker).