For a high latency situation if you're text editing there is EMACS TRAMP mode, and probably others similar that buffer the file locally, which will also solve the responsiveness problem.
Exactly. In the modern world latency concerns so outstrip bandwidth issues that it's actually much saner to copy the whole file across the wire than it is to try to edit it locally. The curmudgeon in me finds that amazing sometimes.
Yup. For command line work I usually don't mind but for text editing I find any perceptible latency incredibly grating. SSHFS is another solution that doesn't need anything special installed on the remote end. It's a pity Plan9 didn't take off, I think it hides this kind of pointless drudgery.