I'll use cloudbased services (the current Perfectomobil at $4/hour for BlackBerry is quite good) but they can't replace the real hardware - it's only good enough to do some additional compatibility tests.
F.i. it's quite impossible to create and test a decent userinterface for touchscreens if you only use the mouse during development because it's so much easier to hit small spots and you don't have the huge area hidden by your fingers.
Well it may be possible for some simple apps built using standard UI controls, but as a game developer I have to constantly do tests on the real devices (I've bought more than 100 phones since I do mobile game development so I spent quite a lot of money - which I'd love to reduce if there's a reasonable way :-)).
