OK, so apart from syntax hilighting, what does an IDE actually do?

Obviously I haven't used many IDEs, but watching a discussion about the 
topic, there seem to be two camps of opinion:

1. Expert programmers using powerful programming languages don't need an 
IDE. (Alternatively, "if you need an IDE, you're a bad programmer or 
you're using an inferior language".)

2. Large systems require an IDE. (Alternatively, "if you don't need an 
IDE, you're only writing toy programs. Or you're just too stupid to 
realise that you need an IDE.")

Can anybody throw some light on this?

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