IIRC Elbox has already stated that Dragon will still be usable under OS4 (with Shark)... By replacing a good deal of the 68K JIT functions with a REAL, 68K processor. The ColdFire functions will be MUCH faster than emulated instructions on a PPC.
So no, it's not going to be stuck in OS3.x.
I do have one concern tho... Isn't the CPU card a little too close to the AGP slot? I mean that can't be good for cooling.