Sounds like you want the dev:watch command. From the documentation:
The watch command can be used to help at developement time. It allows you to configure a set of URLs that will be monitored. All bundles location matching the given URL will be
automatically updated. This avoids the need for manually updating the bundles or even copying the bundle to the system folder if needed. Note that only maven based urls and maven snapshots will actually be updated automatically, so if you run
dev:watch *
It will actually monitor all bundles that have a location matching mvn:* that have '-SNAPSHOT' in their url.
Doing "dev:watch --help" from the Karaf shell will list its available flags and args.
Something similar is the PAX plugin
Either of these will work quite nicely if you've got the m2 maven plugin for Eclipse.
UPDATED: In my company we strive to be as TDD as possible, therefore a lot a development is done without explicitly starting Karaf. In the normal mix of unit tests we're also using Pax Exam, which is largely fantastic even when run from within Eclipse =)
This helps ensure we're not too tided to any Karaf specifics as it runs with Equinox/Felix/Concierge (so I mock out various Karaf specifics we depend on like JAAS authentication). Along with many other cool tools/functionality, it's capable of provisioning Karaf features and using TinyBundles you can even create bundles on the fly (again useful for mocking/stubbing).
Pax Exam hooks into the JUnit framework by providing a JUnit @Runner, the latest version (2) is much faster and has DSL based API, so the tests are quite concise and readable.
Using Pax Exam gives us good test coverage and short development times. Where tests are less practical or we're hunting bugs that don't surface in tests, the dev:watch command is invaluable.
In summary; IMO you should definitely drive your developments with tests (Pax Exam will slot into your existing build nicely and once you get used to it you'll find development quicker). You can start using the dev:watch command immediately, it will certainly speed up your current situation.
UPDATE 2: In answering another question I've added a maven example Pax-Exam testing a ComponentFactory. Test Driven Development is arguably the most efficient workflow available to developers today. link to question: osgi: Using ServiceFactories? and link to sourcecode: http://dl.dropbox.com/u/2465717/net.earcam.example.servicecomponent_2011-08-16_15-52.tgz