Thanks for checking it out Derek! I appreciate that these are new technologies to many, and requires us to stretch a bit from the developer role to the dev-ops role (a good thing, IMO)
In addition to what Mark said:
It lets your dev environment more closely mirror production (my project is Ubuntu, but can be any OS that VirtualBox supports, though Linux works best). So why not just regular VM images? Well, that requires a 300MB-1GB+ to be passed around over the wire. With Vagrant, you download the base OS once (in my case, it's stock Ubuntu) and only update using simple scripts that can be checked out of SCM.
You could accomplish a lot with simple bash scripts, but Vagrant lets you work at the VM level (networking settings, etc) and Chef gives you full power of Ruby (not CF I know, but I think most CF devs are more comfortable with Ruby than bash scripting. Most of what you write doesn't really feel like Ruby - it's more of a DSL, but the full power is there if you need it). (Again, at this point my cookbook is basic, but don't let that fool you! So much more is capable.)
What I've written is *very* simple, but there's tons of Chef recipes out there for any task you can imagine (install MySQL/PostgreSQL/MongoDB, install and configure Apache/nginx, memcached, etc)
http://community.opscode.com/cookbooks
Aside from a team setting where you have a standardized environment, it's good for the consultant as well. It lets you easily isolate your projects, keeping your hard drive clean, preventing conflicts between versions, etc.