SqlServerAlias is managed through wmi. You could assign permissions for your developers to this name space. It's not perfect since you have to assign permissions to the entire namespace and not to the specific class...
This article explains how to set permissions. http://support.microsoft.com/kb/325353
The namespace will be root\Microsoft\SqlServer\ComputerManagement10 for sql2008 or root\Microsoft\SqlServer\ComputerManagement for sql2005.
-Jeremy