Yes, old games and apps would not run,
You mean current applications and games wouldn't run? And all you'd have would be Workbench programs?
They would have needed to convert all the 68K into C or write a 68k emulator that would have sucked back then. More so since it would have to run in the OS, which would have been a lot of work.
And for what? To run on a CPU that had an average speed of 66Mhz? That would have turned the Amiga into it's enemy? I don't think so! The taboo wouldn't have been worth it,