I have already stated my stance – development time is far more important to me, hence I use C. I use assembly for optimisation where needed, and nowhere else.
The only time I would ever consider using assembly would be for a cheap toy or gadget that sells millions, this is the type of place where using the cheapest micro could save you lots of money and you have no real concerns of how quickly you get to market.
For hobby work I would recommend people start with the best micro-controller they can get their hands on (in terms of CPU speed, peripherals and memory, and a floating point unit if possible) and write in C. You will have far more time to spend on higher level algorithm development rather than worrying about how it’s done. Most people want results with their embedded system, and for that I would recommend C.
I have seen people scared away from micro’s at electronics clubs in the past thanks to the compulsory resident assembly stalwart. If someone has a good experience in hobby project (which is far more likely in C), and wishes to learn how a micro-controller (and hence computer) works, they will but I would rather not force people in at the deep end.
At the end of the day for hobby projects, who cares what you use as long as you get the result you wanted, and saving a pound on a one off project for a cheaper micro is not going to be a concern for any sane person.
Oh and if someone says they can develop quicker in assembly rather than C, they are lying. Further to this sloppy assembly can be MUCH slower than optimised C.