I also wonder about things like using the CPU to mix the channels to give you eight instead of four like how OctaMED does it, could it be used in an action game like a platformer or is there too much going on already?
I'm told OctaMED is basically the exact limit of what you can do on an OCS Amiga for software mixing, but I'm kind of hopeful that if you're willing to settle for something slightly less advanced, you could make it work in a game environment. I've been toying with the idea for a while, thinking of mixing four software channels into two hardware channels, and have two left over for, say, drums and effects, but I've yet to get around to any serious coding on it. (I've also been thinking that limiting the software channels to simple looped waveforms, like the TurboGrafx or Konami SCC, would simplify things as well, but that does kind of limit your options, musically.)