That hardware is more than fast enough for web development. People run websites with actual users in VPS instances that have a lot less memory & CPU power...
I remember 10 years ago we ran 4 or 5 active websites (including a for that time fairly active web forum) on a Pentium 100 MHz machine with 64 MiB RAM. And that machine was running websites that used Perl, PHP and ColdFusion. And also ran a MySQL database of course. And yes, it was still "fast enough".
Of course applications have grown a bit bigger nowadays (mostly because they have more features), but they shouldn't require 20x more processing power or 10x more memory.
Let's put it like this: if it's slow on this Atom machine, it won't be able to handle a lot of requests on a much bigger machine either. So if it's slow, you need to optimize your web application, not buy bigger hardware.