You are totally wrong - I use this machine as my primary for all my development work, and it's flawless.
I run both Android and iPhone emulators + 2 different IDEs at once, without a glitch.
Based on what you just said, you're making it sound like it's only good for browsing the net and word processing...
Development work just isn't that intensive. Source files can be smaller than an empty Word document.
I'm pretty sure you're running an iPhone simulator, not an emulator. I don't think you emulate the processor, so there's not real overhead, and any C2D is way more powerful than an iPhone. I'm not sure about Android, but I'd expect it's the same deal - simulation, not true emulation. True emulation would be way too slow, even on a brand new i7 CPU.
Some IDEs are hungry, but no more than Firefox. Now that's a resource hog.
Compiling is slow, but compiling is often single-threaded. I think a slow C2D is about 1/3 as fast as a fast Mac Pro for some things.
Compare that with what professional photographers have to deal with - hundreds (or thousands) of huge files, multi-threaded and GPGPU processing, and a serious need for big screens.
OK, development is serious work. But so is drafting contracts, and balancing spreadsheets. It doesn't all require a fast CPU.
One thing developers really need is a responsive machine. You need to search fast, and open lots of files and programs in a hurry. The SSD is great for this. In this respect, a MBA is a lot faster than just about anything else.