Focusing on the individual developer, getting them the latest and greatest tools may be great for their morale, but it probably won’t make a bit of difference to their actual productivity.
That is not something that I would agree to. Latest & greatest tools are not something that I am particularly interested in, but having effective tools means a world of difference in my productivity. I could mention ReSharper, but that is practically cheating, since I refuse to do any amount of real work without it.
Effective tools are ones that cut down the time that I need to do something, they may be as old as GREP, or as new as the feature that I just put into NHibernate, or a methodology that depends on foot driven mouse to streamline the development experience.
I don't care what they are, they just have to be effective in making it easier to build software. Not to churn out code faster, that is meaningless, but to build software in more effective ways.