Fantastic (vintage) hardware there. As you've found, Thor's library works perfect here (Ralph Babel wrote one too, if you want to try it). You'll also want to check out MuFastZero if you haven't already.
Although the Z2 bus is rather slow, you'll get the full 3.5 MB/s writing to a Picasso IV, which is really an excellent combo with this accelerator.
I wish I could help with the SCSI issue. I used to burn CDs with mine using 2 PlexWriters, and don't recall experiencing the diskchange problem. There was a Guru ROM intended for the TekMagic, sadly it was never released.
I know this card has a "reputation", but I always found it to be really fast and stable. (On that note, just don't overclock it!) I had a Blizzard 2060 too--sold it, and kept the TekMagic.