Can you compare and contrast the two? I really like tramp for seamlessly editing files on a number of remote VMs. You can even edit files inside Docker containers on remote systems via multi-hops. Tramp is a huge timesaver.
Well one major thing is that tramp is inside emacs so you can configure it with elisp, which is a major plus in my mind.
The main problem with tramp is that Emacs is single threaded (and elisp threads run one at a time), so networking operations can be iffy. On most normal connections it works fine in my experience. Another reason to use sshfs is if you're switching between Emacs and a separate terminal, you don't need another connection. That goes away with vterm since now you don't need a separate terminal (it fixes a lot of the traditional problems with ansi-term, shell-mode, and eshell. Although there's a good argument to make for using eshell as your main shell).
It seems extremely experimental, and I've been trying recently to make my emacs more stable so I can choose when I want to spend time editing my config.
Is there a way to get fuzzy searchable history ala bash Ctrl+r?
Also I've noticed that if I use any emacs movement command (say jump to start of line) vterm looses internal sync and my edits edit the wrong text. Is that an issue specific to my config, or do you have it as well?