Im a big, BIG fan of MAME on Amiga and own every game that works with the last version released for OS3 + PPC (0.37b3). Playing games like King of Fighters and Streetfighter II is really fun and they look (and play) absolutely great.
Now, the bad news.. I have the fastest ppc for a1200, and I have a bvision. I also have a 060 and I tweaked my system to the max. But still I am not able to play games newer than say, 1990, without disabling sound and using frameskip. There is no way a 060 alone is able to do so, especially not on AGA. You might be able to play some really basic stuff like Pacman and Kungfu Master, but thats about it.