I agree with you right up to the last few statements.
This card is a music player. NOT a retargetable audio sound card. The idea is to allow people to play music on their Amigas of whatever spec. There is the useful side-effect that people like Novacoder can use the Prisma to play backing music on games which have a compressed audio stream. Paula should still be used for sound effects, which is what it's good at (after all, an 8-bit explosion sounds pretty similar to a 16-bit explosion) and why the Prisma mixes in Paula audio with the outputted music stream
If you're not looking for a card that can play compressed audio in CD-quality, but are looking for a full sound-card then this card is
not for you.
But if you are looking for a card that can play just about any music track on your Amiga, and (with help from people like Novacoder) able to play games with a full soundtrack like ScummVM, then this
is what you are looking for.
For what it's worth, this will make it MUCH easier for bedroom coders to play back compressed audio soundtracks while using audio device (Paula) for spot effects. A simple call to Prisma_PlayFile() is all that's needed - can't get much simpler than that.
The planned AHI driver does not mean the card has the same qualities as a full sound card - it just means a way of getting CD-quality audio out of a normal Amiga - maybe useful with things like emulators where it's just a sound stream but is uncompressed.