Esta configuração está funcionando. Você pode verificar com CURL:
curl -v -H 'Host: dev1.example.com.' -o /dev/null http://dev1.example.com
Aqui está a transação com CURL:
> GET / HTTP/1.1
> User-Agent: curl
> Accept: */*
> Host: dev1.example.com.
>
< HTTP/1.1 301 Moved Permanently
< Server: nginx
< Date: Fri, 25 Jul 2014 04:30:37 GMT
< Content-Type: text/html
< Content-Length: 184
< Connection: keep-alive
< Location: http://dev1.example.com/
< Pragma: no-cache
< Expires: Sat, 01 Jan 2000 00:00:00 GMT
< Cache-Control: private, no-cache, no-store, max-age=0, must-revalidate, post-check=0, pre-check=0