I never came across an 68k programm that actually needs more then 16 MB to run, but having more helps when processing large images/sounds, digitize direct into RAM for speed reasons (in that case the 320 MB on my A3000T don't seem to be enough). Or you just unpack large archives into RAM-Disk and don't have to worry about cleaning up the disk if something during unpacking goes wrong.
The only SCSI-expansion for a desktop A1200 other then via a turbocard would be a squirrel/whippet that goes into the PCMCIA port. But unfortunately this is about als slow and CPU intensive as the internal IDE-port. the only benefit is that you can connect external drives/scanner in a clean way.