Welcome!
1.) The Chip Mem is limited at 2MB unfortunately due to the custom chip design in the A1200.
2.) The Blizzard 1260 runs quite cool as it has a 3.3v CPU - fine for a desktop if you leave the trapdoor off the A1200. However you may need an uprated power supply if you are running with a couple of extra expansions.
3.) Using an
SVGA to Amiga RGB adapter and SVGA monitor, the Amiga can access extra modes such as DBLNTSC, Multiscan, Euro72 etc. These modes have better refresh rates as well.