Coldfire V4 is an interesting CPU, at 266mhz it runs at a nice and efficient 400 MIPS.
...running coldfire code. It won't be anywhere near that when running typical 68k code. Instruction emulation is possible of course, but it introduces huge performance penalty due to exception processing. Even then there are certain opcodes that are incompatible with the 68k, and cannot be patched on the fly. If you instead go for JIT route then why bother with coldfire in the first place, just use faster and cheaper solutions instead.
As far as I can remember Elbox went as far as to actually build a working prototype only to kill the project. I would guess the reasons were performance and compatibility issues.
Of course anyone who actually read the coldfire documentation could easily see that and predict this result.