Low-level optimization does not prevent you from doing high-level optimization
It does not completely prevent you from doing it, but writing complex code in assembler is a lot harder than writing it in C#/Java because you have to do everything yourself.
I've replaced assembler with C in projects that has ended up with the C code being quicker, it was rewritten in C to make it portable but in the process I noticed simple ways to optimise the algorithm. The effort required to optimise the assembler code wasn't worth it, neither was writing another version of it for a different assembler.
(and the idea that assembly is more prone to bugs than high-level languages is a myth. Bugs come from sloppy thinking, not from lack of language features.)
It's not a myth. It's much easier to spot bugs in a high level language than it is to spot one in assembler. If you have infinite time to study a small assembler program then yes you can get it to zero bugs & sometimes that is important. Time pressure usually means that if you can't spot a bug by speed skimming your code as it scrolls by then it's likely to ship. Automated testing and code analysis also helps reduce bugs, but again these are easier to do with high level languages than assembler.
I guess you have never had to spend a couple of months writing 400 lines of code a day to have it tested for a couple of days before it's deployed to thousands of users who work outside of office hours. You need that to work. Language doesn't give you it magically, but spending the time to evaluate whether you could do it faster in assembler is likely to break your budget.
Having the same source compiled for PPC and 68k is more important than shaving off a few microseconds. Even if you could speed layer operations up by a further 10%, it would only make a noticeable difference if software was constantly performing layer operations. If it was doing anything else then it will diminish the return you get.
If your argument is that every single piece of software ever written should be micro-optimised, then you're likely to be dead before any of the software is finished. It would be cheaper to phone up Motorola and pay them to design a faster 68k just for you.