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Virtualized SQL Development - One server or many?

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I'm continuing to have a fundamental "discussion" with one of our IT managers and I'd like some input. Over the last year, we've moved to consolidate our physical MS SQL servers to a virtualized (VMWare) environment. We're a relatively small team of six or so developers, running multiple smal-to-medium-sized database development projects on each server. My original question was why we migrated these from six physical servers (MS Server 2008/SQL Server 2008) to six VMs (?) The response I got was, "Well, we're concerned about licensing and resourcing...and um, what if someone needs to restore a database?" (If you're scratching your head right now, that's OK...so was I...) My thought was that we'd of been smarter to consolidate these all into one, single large VM on our ESXi infrastructure.

So, I guess my question to the group is: am I...


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