The pro in running Server OS for development is you have an environment that is almost similar to your deployment environment, if you're building software that will run on a server that is. For some platform such as SharePoint you have to run a server OS for development.
Windows Server, especially with Win Server 2008, will come out of the box more secured, unneeded services will be turned off by default, I don't know if this is an advantage or a disadvantage.
As far as disadvantage, some application that are built for desktop primarily will not run well on your server OS. They will most likely run but you will have little issues here and there. The best example is iTunes, it will run but you'll see some weird errors from time to time. Also, some apps do check for supported operating systems, and most likely will not even install if you're running a server OS.
Finally, there's colors is a bit off on Windows Server, I have one monitor that it is hooked up to a Windows Server 2008 R2 and a Windows 7 machine, on Windows server 2008 R2 color are bit lighter, I do a lot of graphic design so this was very annoying.
So the answer depends on what you develop and what applications you use most often. Most apps and drivers will work without a problem.