"Yoda talk" is a very nice phrase, I hope it catches on.
Dogfooding is sometimes a good idea, and of course testing on a range of setups is important. I suspect there is a problem with people testing on older software but not trying any older hardware (especially for web apps), which using old machines could have partially avoided.
But the idea that development should inherently be able to happen on older hardware than the product will run on is arbitrary and ridiculous. At best, that creates pointless pressure to rely on hardware-friendly tools, which could mean anything from not leaving open lots of relevant Chrome tabs to pushing developers to use vim instead of a Jetbrains IDE. (Nothing wrong with vim, obviously, but "we intentionally hobbled our hardware" is a weird reason to choose an environment.)
At worst, it fundamentally impedes development work. For an extreme case: Xcode isn't really optional for iOs development, and merely opening it seriously taxes brand new Macbooks - applying this theory to iOs developers might leave them basically unable to work. Even outside that special case, there are still plenty of computer-intensive development tasks that are way outside user experience. Just from personal experience: emulating a mobile phone, running a local test server for code that will eventually land on AWS, running a fuzzer or even a static analysis tool.
Even if we grant the merit of that trite "remember who you work for" line, sticking to old hardware doesn't seem to follow at all. We wouldn't go around telling graphic designers that if they work for a customer with an old iMac G3, they're not allowed to have a computer that can run Photoshop. Heck, are there any professions where we assume that building a thing should be done exclusively via the same tools the customer will employ once it's finished?