Yes, early Mac development was done on Lisas. I think the later more capable Macs were similarly priced.

What I meant when I brought up the PPC 604 is that by the mid-90s cost of hardware was no longer a big issue in providing users with powerful computing environments. But it's clear that power isn't really what sells. Not even to developers, if you look at some of the more brain-dead environments and languages out there.