As a developer, I think I'm damn close to being able to work on a phone's processing power. The biggest problem is driving large enough monitors at this point, but most of my work can be handled via SSH when speed is an issue.
On my windows desktop, at least half the time, I am using an SMB share in my Linux VM to use a gui editor in windows (love VS Code), and have a few SSH terms in conemu connected to the same VM for running stuff. On mac, I managed to do fine locally against iTerm2. I tend to deploy against linux so this is the least friction for me.
I was actually fine with a chromebook a couple years ago, but couldn't get it to work with the VPN at work... So went back to an mbp. A lot of people do fine with this level of device (hence the chromebooks). I think the real shift will be in terms of integration without friction, which MS has a poor track record of, and most developers in general do poorly with.
As someone in my office just said: "This is like saying 'of course shoes need laces'".