I have seen a few posts suggesting bigger and bigger monitors. I do admit that having great screen size does reduce scrolling, but i feel 1280X1024 is ideal. I do all my coding on a laptop with this resolution. I feel anything which does not fit on this screen size should be inside a subVI. Another important point to remember is where your applications will be deployed. I have burnt my hands a few times by developing GUI's on large screen but then deploying them on smaller resolution screens. Lets admit LabVIEW does not scale GUI objects very gracefully and its usually a pain when screen resolution changes. Although I have to admit the introduction Splitters and Panes have helped to address issues with GUI scaling.
As with processing power and RAM capacity, i believe its best to develop and test on a system similar to what you would deploy your applications. Again developing on a Rockstar (Highend) PC can give you fall impressions on performance of your application.
Justin Thomas