This is a tough one, but I'm leaning towards the Full Sandbox. It's the closest match to the production environment, and that's important for testing and development. Plus, who doesn't love a full-fledged sandbox to play in?
Hold on, did you say 'many developers'? I hope they have a good dance routine planned for the team building exercises! Anyway, I think the Partner Developer Edition is the way to go.
The Full Sandbox seems like the best fit here. It provides a complete replica of the production org, which is exactly what the team needs to work in their own individual orgs.
I agree with Dierdre. A Developer Sandbox would allow each developer to work in their own environment with the same configuration as the production org.
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