because it's not that relevant for Amiga, but there's tons of other cool stuff you could do if someone wrote a generic M68k tracer (e.g. one that's configurable as to which instructions it traps), like building all kinds of funky debugging and analysis tools that'd work even on non-MMU systems.
The major problem is latency. You'll have to sit between the cpu and ram and insert something like a line-a/illegal instruction. However you'll have to wait for the data to settle before you can examine the opcode to patch (which if it's configurable will involve a lookup) and only then can you output the original/replacement opcode to the cpu (which will also have to wait for the data to settle ).
You'll also need some hackery to determine which is the opcode and which is the operands, which may also require lookups.
As this will happen when the instruction cache is being filled it may only have a small impact (until the exception is taken anyway) and it might be worth the penalty. However an fpga cpu is a much better way to go.
CF is fine for new software, you can even make new software that works on CF & 68k. But there are always going to be doubts over old software.