As with everything else, there's a lot of "common knowledge" about the amiga, that I don't think holds up to proper scrutiny. Feel free to correct me though!
Common knowledge: The amiga wasn't powerful enough as a gaming machine anymore
Why it's wrong: Sure, the 68000 with 1 meg of RAM wasn't cutting it in 94 anymore. But then, we had 68060 processor cards, RTG video cards, loads of RAM etc available.
It's a travesty that virtual no games ever took advantage of this equipment but that's a shortfall of the developers, not the machine itself.
I think this is wrong. Publishers publish games to make money. To maximize profit, code to the lowest common denominator. Even when the A1200 was at its peak, a lot of software was still produced to be compatible with the A500.
Another example is the Sega CD, an add-on for the Megadrive. Sure it sold, but there werent many games produced for it, because the installed base of Megadrive consoles was greater than the installed base of Megadrive with Sega CD added on.
So even with RTG video cards, RAM, faster processors etc, publishers were still targeting the A500. I seem to remember the endless discussions on Amiga Newsgroups of why Lucasarts couldnt bring X-Wing out on the Amiga...