• VSCode Version: 1.19.2
• OS Version: W10LTSB

Steps to Reproduce:

1. Create a new line of a block of multi-line code like an opening div tag or JavaScript or PHP function, then hit Enter.
2. If you have an indent, continue to step 3. If not, create an indent with Tab or 4 spaces (whatever your religion is).
3. Hit the Backspace key; notice it merely removes an indent each time instead of deleting the whole line and putting your cursor at the end of the previous line like awesome JetBrains software does. Realize how many unnecessary keystrokes you'll now have to deal with (and Ctrl+Shift+Up-End each line is still a lot).
4. Continue to use VS Code because nobody can afford to buy another JetBrains license for your new job.

This should be standard logic in all editors; there's zero functional or stylistic reason to want to just delete indents on an empty line with Backspace (unless there's too many indents there which is rare, or your editor auto-indented wrong), and even if for some Pan-like reason you need to use that regressive space, you can just use Ctrl+Home to delete the line then indent where you want (or Shift+arrow, or just arrow if you're a weirdo).

Does this issue occur when all extensions are disabled?: Yes