Visual Studio has a nice extension called "Shrink Empty Lines" which enables the user to have empty lines and/or lines without alphanumeric characters shrunk in the editor to a specific extent. This way users can have more vertical space for their actual code.

https://marketplace.visualstudio.com/items?itemName=VisualStudioPlatformTeam.SyntacticLineCompression

It would be very nice to have this feature on VS Code, maybe with an extra setting to specify shrinking percentage (or just an enumeration). I would have made an extension but this is clearly something not achievable through the current Extension API.