Interesting - completely forgot about the AM/FM modulation capabilities - have they ever been used?
However, 14 bit playback isn't done with AM but rather two synchronized channels, one running at highest, the other at lowest volume. Due to the 6 bit volume resolution, they overlap 'in the middle' so two bits need to be eliminated. (You just put the high byte in the high channel, and for low byte you shift right two bits and then put it on the low channel.)
Using AM for high resolution playback is an interesting idea - it'd be a kind of highly dynamic compression that follows the wave level. But then again, each sample would only have 8 bit resolution even at highly varying volume levels.
Also, Paula's sampling speed isn't really limited to 28 kHz - but the DMA system is. On ECS with a increased scan rate or the - rarely used - PIO mode it can be much higher. Is that 1.7 MHz the maximum hardware sampling speed?
Just wondering - with 14 bit DAC resolution but 4x oversampling you could recreate the two dropped bits through PWM. E.g. an '030 with fast RAM should easily be capable of feeding Paula...
