Maintaining a local site would seem to be common practise as well as common sense. The only editing ability you lose with the stripped live site is using GoLive objects. As most peoples workflow involves making change to the local site and then uploading I don't think this is a major issue. Storage is relatively cheap anyhow, we've moved from the days when a 20Mb hard drive cost $1500 ;).
Can't say I've had a problem with the CSS interface. Certainly there's room for improvement but I suspect we'll see that in the future.
SSH would be a good "add". We'll see that in time too I'm sure. John Kranz was a sad loss to Adobe, but I'm sure there's equally capable people at the helm now.