Sure. And you have 10 of those MSDN subscriptions, one for each developer. You can't use say 20 small instances for one site, but you can use 2 instances for 20

Sure. And you have 10 of those MSDN subscriptions, one for each developer. You can't use say 20 small instances for one site, but you can use 2 instances for 20 separate sites/services.