Almost a year ago, I wrote about how to override caching when developing here, and only turning caching on when testing. As it turns out that might not be a great idea. Too many times I have had strange bugs on production that I could never figure out locally due to caching issues. Only after a few hours of debugging did I realize it could have to do with caching.
There's also a really big reason why nobody's written an easy way to turn off caching in development, mainly because it's bad for you to see different behavior in development vs. production at any time, especially with queries and fragment caching.
The kind of caching you do want to turn off is class/controller caching for the sake of avoiding restarting your server just so it will pickup your new code.
config.action_controller.perform_caching = false
config.cache_classes = false
So run memcached, do your fragment caching in development, and you should be good to go. No reason not to cache queries or view renders.