missing images and css
In other words, the site allowed you to see the HTML but not the supporting files.
This is a tricky (and interesting!) question because each module is an island. Nothing in mod_rewrite can overrule the mod_authwhatsit directives (Allow/Deny), and vice versa. If any module at any point has issued a 403, the request will be denied, no matter what happens in other modules.
The complication is that the pages, unlike the supporting files, don't really exist (the "index.php" and !-f business that's common to WP and several other well-known CMS). So somehow the "Deny" directive doesn't kick in. As an experiment, try requesting example.com/index.php-- as opposed to plain "example.com" or whatever you normally use-- explicitly by name. Do you then get locked out?
Another possible explanation is that the config file-- not your individual htaccess-- has a directive something like this:
<Files "index.php">
Order Allow,Deny
Allow from all
</Files>
This is a possibility if you're on shared hosting with a company that supports a lot of WP sites; it's to prevent infinite loops if there's a WP-internal 403.
What happens when you do get a 403 as intended? That is, what do you see on the browser screen?
Do you have access to your site's error logs? Not the regular access.log but error.log. If so, have a closer look and see what comes up. Error logs don't always show 403s-- it depends on the server's log level-- but mine do. If you don't know your current (non-home) IP look at the appropriate time frame. I gather this is a development site, so error logs shouldn't be too fat.