Using the above method, along with something like VNC, you can actually get something resembling Android development all on the computer . You can actually see the N900 screen on your PC and run the apps/control it just as if it were an "emulator" to test your apps with.

I do similar to the above, I don't use SVN though, I just modify my python files, rebuild a deb package, install it on my N900 and launch it all via SCP/SSH. My "SVN" is just maintaining older versions of the deb files I create. I also just use simple gedit to code the python in, no fancy editors or anything. (I did build my UI with QT Designer though.)

I then do minor adjustments on my phone while I am away from my Desktop and when I get home just copy the files to my desktop overwriting the old stuff, and rebuild the deb file.

It's really very simple.. no harder than using any FTP-like system.