Hi Parveen,

I absolutly agree, that the process of setting up a OSM DB is somewhat crude. As far as I understand your pproposal 'OSM Server' means a DB, renderer and Tile server? I guess this is similar like one of this approaches:
http://wiki.openstreetmap.org/wiki/OpenStreetMap-in-a-Box
http://wiki.openstreetmap.org/wiki/Maps_on_a_Stick
http://wiki.openstreetmap.org/wiki/TileMill

But AFAIK this aren't things that developers need, but some kind of service proverders. In my eyes, Devs would enjoy prepared packages that simplify the process of data processing
http://wiki.openstreetmap.org/wiki/GSoC_Project_Ideas_2011#Prepared_global_Data_excepts
But I heared that setting up a Rails port (completely OSM portal, DB,...) instance is quite difficult, so this would be another idea?

bye
Matthias

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