I've got a new answer/reason to bring to the table, I know this is an old question...
Do it for your office safety!
SSDs reduce the amount of office sword fights, by reducing the time spent compiling. That alone might not be a compelling business case, though.
In seriousness, as others have already stated: buy one and find out the numbers for your situation. Weigh how good of an investment they are to buy for all developers. Intel are drives the safest best still, but there are multiple good options at this point if you read some Anandtech reviews.
In my experience, SSDs help other aspects of a development work flow even more than compile time, although it is a notable benefit by itself (YMMV - some compile tasks are more CPU bound). In our case (Java) and lots of files, it did give a nice boost.
Here are the big wins for us:
- Subversion performance
- IDE performance (Eclipse in our case)
In our case, we have a large subversion repository and a lot of files (45k files in a workspace), so anything from opening up a TortoiseSVN commit window, to the actual commit time, to merging branches is SIGNIFICANTLY faster. YMMV, but anything that benefits from the SSD's fast random reads/writes will generally be noticeably faster, in some cases by an order of magnitude (svn usage in our case, on the client side).
Just my 2 cents from my own experience using the Intel x25-m SSDs - everything is snappier, and they are totally worth it. SSD prices have dropped substantially this year... and unless you have a truly monster CPU ($1k spent on the CPU alone) it is likely the best overall performance improvement for your system.
Yes, "it depends" by how much, but SSDs rock. Certain prominent developers agree.