Thank you all for your responses - they were exactly the seat-of-the-pants experiences I was looking for. For the record I am initially going with the desktop with 2x20" as my main unit running SVN so I can keep my laptop in sync (and fix my brain assplosions). Multiple monitors were universally endorsed, as were iMax proportions. My desk at home has 4-5 screens (2 laptops sometimes). It also has a wall & can post-it ideas & snippets on. Try that with a laptop.
I was surpised by how many people were fussy about their mouse until I looked down at my collections of identical logitechs. Oh yeah. Definitely important. Same goes for keyboards but I've found that using identical KBDs on the same desk gets confusing - always typing on the wrong one.
Geoff - External drives should be faster with an eSATA card - firewire (400) is about the same as USB2 in my experience. I've seen demos with VMs on external drives and they went fine.
LeviFig - "snappyism" is a great concept and also a prime motivator for me to use my desktop - there's something about spreading the bits between 2x Raptors (not RAIDed, just symbiotic) that a laptop just can't match at least without SSDs. I am, fundamentally, an impatient bastard. I also have docking stations (with stands - monitor heights are closer) & screens at either end of the journey for teh laptop.
Chris Miller - I agree about the component choices in a desktop but you do have a lot of choice with laptops too - just buy the one with the bits you want. Granted, they are more expensive but I buy ex-demo HP workstations off eBay with a couple of years on-site warranty left for less than 1/2 price.
Amr - I've seen dozens of demos off VMs on laptops - they work fine. Also, try a 17" 1920x1200 screen - they show lot and they're usually on 2-3 feet away so they look bigger. That's not doing my eyesight a lot of good though.
Everyone else - thanks again for responding - your insights were invaluable. Why does invaluable mean the same as valuable?
My insights - a 17" laptop is reasonably portable (by itself), a great wall to hide behind in boring meetings but the backpack to carry it can almost double your kerb weight when you apply the 1st law of physics (matter expands to fill all available space). Also, an extra bolt-on battery is very handy - get the big one. Carry a mouse - they work on pretty-much any surface. Get as many pixels as you can. Good keyboard is a must. Docking stations are worth it.
Desktops - 10,000 rpm drives make a big difference. Jeff et al have blogged about this. I'm using one for the OS (Server 2008 workstationised) and one for the projects / SVN. My version of dual boot is changing the boot drive in BIOS (or swapping it in my laptop - takes 30 seconds) - KISS.
Thanks again all - much appreciated
Ewen aka CADbloke