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I have 3 year old mb air, i made the mistake of getting the lowest spec version, but even then I'm still able to do lightweight RoR development (sublime, rails s, guard, chrome all running at once).

I've never heard of anyone ever getting "Banned" for running OS X in any sort of VM, or on non-Apple hardware for that matter.

The Air isn't "useless", but it isn't really intended as a development machine. It prioritizes size and battery life over horsepower.

Useless insofar as it has no use for me. Pretty much everything I do requires more horsepower than the MBA can deliver.