Polish companion extension README and package.json file ahead of publishing (#4729)

packages/vscode-ide-companion/README.md

@@ -1,9 +1,20 @@
-# IDE Companion
+# Gemini CLI Companion
 
-## Local Development
+The Gemini CLI Companion extension seamlessly integrates [Gemini CLI](https://github.com/google-gemini/gemini-cli) into your VS Code environment. This integration enables Gemini CLI to access active information like your open files.
 
-To test the extension locally, follow these steps:
+# Features
 
-1. Open the `packages/vscode-ide-companion` directory in VS Code.
-2. Run `npm install`.
-3. Run the extension development host via Run + Debug -> Extension
+- Open Editor File Context: Gemini CLI gains awareness of the files you have open in your editor, providing it with a richer understanding of your project's structure and content.
+
+- Selection Context: Gemini CLI can easily access your cursor's position and selected text within the editor, giving it valuable context directly from your current work.
+
+# Requirements
+
+To use this extension, you'll need:
+
+- VS Code version 1.101.0 or newer
+- Gemini CLI (installed separately) and running within the VS Code integrated terminal
+
+# Terms of Service and Privacy Notice
+
+By installing this extension, you agree to the [Terms of Service](https://github.com/google-gemini/gemini-cli/blob/main/docs/tos-privacy.md).