By "reusable Windows and Web controls" I think they mean Standard Edition forces you to drop down to the command prompt to compile a DLL.
By "powerful server software" I think they mean you can't use Standard Edition to develop a service. Though I support you can do something ugly like use srvany or cygrunsrv...
If all you want is the IDE, Standard Edition should do the job....
Still, it makes me wish there was something between a $99 Crippled Standard Edition and a $500 "This is the version you really want" Edition. Can we just have one version for $250?
Or... how about just giving away all development tools? Tough concept for a company that got its start selling interpreters and compilers, but wouldn't this benefit the Microsoft ecology more in the long term? The old "give away the razors, sell the blades"
approach. It seems to work for printers. (Inkjet cartridge cost > Printer cost)
Or... how about a FREE Professional Edition that will only compile 500 lines of code or less? On line 501, you get a popup stating that you should seriously consider upgrading
I suppose this will be a moot point soon enough anyway. Once we all start writing entire apps in XAML, I can go back to "Visual" Notepad