I use this each and every day for several months w/o any problems whatsoever. As long as you're working only over sshfs and not sideloading any files or creating them directly on remote location you'll not see a difference between sshfs mounted files and local ones (with -oworkaround=rename even remote git repos work as expected). Well, the search/replace in whole folder trees is slower and if you create new file remotely you will have to force listing refresh, but that's the price you pay for working over network.
On windows I tried this:
when it worked, the expierience was similiar, but overall it was less stable than sshfs and I pretty quickly gravitated towards linux VM even on my windows boxes.
Whit FUSE in place there are countless projects which will let you mount exotic remote and not so remote locations (see avf.sourceforge.net/) basically anything holding files is a go: FTP, WebDav, bz2 archives... whatever your heart desires