Yup. The whole thing. Add a machine, stir and go.
It would simplify things if a developer could just boot with the CD and have everything ready to go. Connect the target to the USB, connect an ethernet, and you would be all set.
Ideally, the arm kernel would be setup with the common modules. Just select the ones you want, type make, etc.
The beauty of a live CD is that it can be booted on most any machine and be ready to go in a few minutes.