I've used it a lot for development. It does a great job with things like source code control, resolving conflicts, etc. I also use it with Visual Studio Database Projects, and SQL Server Managment Studio Solutions. It was a little tricky to setup though,
I wound up doing a blog post just so I could remember.
There's no TFS support built into the PPS dashboard designer, but there's nothing that stops you from just checking in the file to TFS as part of the rest of your project. I suspect the rationale was that the PPS dasboards are stored in SharePoint,
SharePoint should be backed up, so it'll act like the (sort of) source control system itself.
It's not great for deployment however, so I tend to stick with either the tools built in or third party tools. I do highy recommend it though for the development aspects.