valid points. obviously what we can give for free is not a 4g ram and 8 cores, it's a small instance that runs most of the things- look at it from the bright side, ur program will halt sooner, in case of infinite loop :) and if a company chooses koding to be their dev environment, they are free to provide any amount of ram or cpu per developer, in that case, everything will work as you expect.
I don't believe that koding will give you an environment that is in any way better than your local stuff (except when they ask the full hosting costs per developer). So the idea that they continuously run your test suite in any way better than a proper setup on your local machine is wishful thinking.