The Android 2.2 and 2.3 Emulators are atleast on my machine fast enough for development, but i still prefer to develop against hardware just because it feels faster and more real. Multi-Touch is easier...
Even on iOS it's better to develop against actual hardware than the simulator, therefor it's not really that much of an issue.
I dont think its fair to call the emulator an obstacle, it just comes with limitations. After all, emulators are only designed to emulate, they can't replace areal device. A hammer is still a tool, its just not the appropriate tool when you're trying to assemble a clock.
Maybe its just time to upgrade your tools.
XCode isn't perfect, but I don't need google for blog posts or spend hours writing scripts or messing with configuration files in order to get it into a usable state.
Being open source has nothing to do with how easy a platform is to develop on. All that means is that the platform's source code is available.
Just watch that your horse desn't fall off that precariously-high ledge and crush us lowly startup operators.