Where they really that desperate to save a few microcent on copper tracks?
32 bit needs double the number of ram chips than 16 bit. Even if they halved the size of the ram chips it would still be more expensive.
The rumour is the prototype used a 68000 that could take upgrades (like an A1200) and they had designed a prototype 030 card. I imagine after the A1200 was released they knew they couldn't compete if they shipped with a 68000. Putting a full 030 in there instead of an EC020 in the A1200 gave you an increase in the perceived value. The 030 has more cache, they probably hoped that people would be able to write software that didn't need too much access to RAM.
Jack Trammiel was always about selling shoddy computers cheap. When he was at commodore it worked quite well, because his competitors used to charge a lot for shoddy computers. An industry of fast loaders for the c64 was created because they shipped it as soon as it sort of worked.
The Atari ST was never a competitor to the Amiga because he did the same thing after buying Atari.
The Falcon 030 had a chunky 16 bit colour mode, which AGA desperately needed. If commodore had not gone down the path of AAA in 1988 then AGA could have been better. They turned AA around in a year. AAA is a good example of second system syndrome.
It was game over in 1993 for home computers, the PC was taking them on with doom etc. A games console that offered similar games for a lower outlay would have sold well in some countries (until maybe Sony entered the market). I believe AGA with chunky 16 bit modes and texture mapping in the blitter would have been a game changer. Commodore just didn't think of doing it.