Pros, you can upgrade dev machines and easily move to other/new developers. You can work at home or remotely without changes.

Cons - bandwidth needs to be there. If there are network issues, you can't work. The ways in which some keys work through RDP isn't the same, so you might lose some productivity. Upsetting developers never helps them code better, so I'd note that this change, while disruptive to development while it's implemented, will continue over weeks as developers adjust.

I'd also note your security issues are still issues here.

An alternative might be to use local VMs on your machine that are joined to a separate domain, that way you still have your own workstation.