I'm not sure "faster" == "faster" in this case...
desiv
IIRC, the 65816 is missing some on-chip registers compared to the 6500-series, and pales in comparison to the 68000's 16 registers. This will drastically affect performance. (If you really wanna learn some gritty stuff, check out a MIPS emulator. It's fun!)
But, yeah, the 128 was still 8-bit but backwards compatible with a compatibility mode for (the dying) CP/M. If Commodore had released the C65 (comparable to the Apple IIgs in terms of "next generation") I think that would have been the end-all-be-all.