this is really the right answer, as it is the exact solution given what tools are available for solving the problem of managing development. but what is the difference between the startup time in this video, and the start up time of an ide?
i can see a developer workflow where you start up the vm, create your example function or class of what you are solving, close the vm, and let some script find the new file, check everything in, etc...
i don't feel it would be much different than having a standard install of an ide for a group of devs, but in this instance you could have all the customization of an entire OS, plus creating a single app that people can throw away and start from square one, or even check in the whole OS install as a version?
i agree this is a lot of overhead, but i think it is okay someone is exploring this, i feel it is very interesting, and a pattern of abstraction we should consider more. this is how i see the small EC2 images i've been playing with.