Although it has gourard shading as well, dunno how intensive that is to generate in software. Certainly plenty od demos do it.
Gourad shading isn't intensive as far as shading models go, but any model is going to suffer in comparison to flat-shading on the Amiga simply because you can't use the blitter for fast fills like you can with flat shading. I suppose if you limited yourself to only a couple levels of shading you could divvy up each polygon span into sections of each color and use that, but it'd still be slower.
I'd expect that demos use precalculated shading or somesuch, but I dunno.