I switched from VS Code to Zed about four months ago. Before that I'd been on VS Code for six years.
The good: startup time is noticeably faster — I timed it at 1.2 seconds cold start vs. 4-5 seconds for VS Code with my extension load. Multiplayer editing works without any setup, which replaced our use of Live Share. The built-in terminal is responsive in a way VS Code's never was on my machine.
The bad: the extension ecosystem is sparse. I lost GitHub Copilot for the first two months (it's supported now), lost my specific ESLint configuration UI, and the Git integration is functional but barebones compared to GitLens. I also miss the command palette's fuzzy matching — Zed's is close but less forgiving of typos.
The verdict: I'm staying on Zed. The speed advantage compounds over a full workday in a way that's hard to quantify but easy to feel. I accept the extension trade-offs. If you rely heavily on a specific extension that doesn't exist on Zed yet, check before switching.