I don't have the resources to setup an ESXi host or host farm. I want to know if its possible to create a vSphere controlled environment consisting of VMs running in VM Workstation and manage it with vCloud. This would be a low-end development environment for me to use.
Running vCloud along with it's vSphere and ESXi hosts is entirely doable within Workstation alone. You simply need enough RAM and decently fast storage for it to be useable. Note that you need to enable Virtualize VT-x for ESXi VMs, otherwise you will not be able to provision nested 64bit guests.