My development env on local instance is Xubuntu(Ubuntu 14.04) with plain Apache and Webmin. I am primarily back-end developer and for WordPress that's all I need. I use SSH when it's available, on shared hosting surely not.
I use Git for themes and plugins, as my job often includes writing plugins and functionalities that can't be found easily/free on repos. And Git allows me to track changes and continue my work remotely if necessary.