Pretty much all of the' look and feel' can be changed with the designer edition and a fair bit of functionality too at the template level. All the files for the templates and plugins are available to be edited - you have access to the source code. The developor edition in general gives you increased flexibility to change the core functionality as well - the php files can be edited too.
For example - on our site, all of the examples and demo site only require the designer edition, although some of our customers do have the developer edition because they have extended the functionality. Examples would be putting say an advanced search capability on the home page, combining a couple of steps in the checkout process, etc
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