Yes the windows port is still alive, and an official port is still on the MDG roadmap albeit after 1.0.
There are still issues to be aware of, and I certainly don't claim it to be bug free. But if you're using windows, my port is useable and means you can use a familiar environment, tools etc.
If you're happy running a Unix like environment, can spare the ram, and don't mind switching between the two, then a VM approach might be for you.
The key thing is that it is a matter of taste, and what you are prepared to compromise. Only you can decide.
Why not give both a go, and then decide? Switching costs are minimal.
Regards,
Stephen
PS For the 0.9.x port, see https://github.com/sdarnell/meteor/wiki/Windows