Is Mac OS X in a VirtualBox VM suitable for iOS development? I have finally successfully managed to install Mac OS X in a virtual machine on my Windows 7 laptop using VirtualBox and a tutorial from Lifehacker.

Performance is very slow, with Mountain Lion reporting that it is seeing just 4MB video memory (I didn't manage to load the Intel HD3000 driver). Youtube is essentially unplayable, with even the audio potion stuttering. That said, the interface and general UI is pretty acceptable.

Even with such slow performance, does it make sense to download and develop with Xcode? I am allocating 3GB of RAM. What would performance be like under those conditions?
If this is a hobby and you are not planning on releasing any apps to the app store, and you can tolerate the slow performance and don't care about running on real devices, then don't worry about it. However, if you are creating a business the it is essential to run on real hardware. Any low end Mac (MacBook Air 11", is my current favorite) will blow away any virtual machine.

I have a fairly simple app that runs fine on my iPad and iPod Touch, but has all sorts of graphic anomalies in the simulator.