I don't think that is correct. AFAIK the 'development' side of the heroku status panel is not related to developing, per se, it's the status for apps that are not running on production-level resources... for example, single-dyno apps, or apps not running with production flavor of database.
I agree that the production/development split is not entirely clear without additional explanation. We've spent a lot of time thinking about how to communicate these things and have so far not come up with a way that we feel better describes the issues at hand.
Thx for correcting that... have used that screen a million times without realizing they lumped dev apps and prod+dev workflow together. 3 columns would eliminate any confusion (Production Apps, Development Apps, Development Workflow) but might not look at clean.