2) Nothing is free if you are buying more hardware. Considering the costs of supporting Chrome/Firefox are very incremental, doing anything other than running the browser natively increases time and cost.
3) Cheap yes, but you have to do it, and its not like buying one piece of hardware. You have to do it for every person. Better, but not great. No one likes running VMs on their boxes because it still crawls, even with 2 cores and 8GB ram.
4) Don't disagree with you at all. I was against this design decision from the beginning but lost that battle. It doesn't change the fact that we need to test all of it.