Let me give my opinion on the whole thing. I want live editing, but I also want the ability to download, want the ability to upload, and want the ability to create local files.

Let's say I'm going on a trip somewhere. I would not have internet access, so in my attempt to leave and work on a project without internet... I will download the whole folder of code to work on offline.

Let's say I'm not going somewhere without internet. Editing straight from the server will eliminate a lot of possible mistakes I might make. Such as not updating my local copy when I start working and forgetting to upload to the server.

Reason to keep local files is if I wanted to make a markdown note file on my iPad and wanted to keep it on my iPad. That is a good reason to keep it where you can have a local file.

That just says my outlook, take what you will... I would love to see this feature, but kinda like an add-on, not removing current features.