Hi :-D
People are almost joining in droves this week it seems...
Your A1200 can indeed be upgraded and quite far (68060 + PowerPC, PCI expansion bus + gfx card, sound card, network card etc. and a big box to shove it all in), but it is not a cheap option.
If you want something with more muscle, there are fully PowerPC based solutions, namely the A1 (several models) and Pegasos (at least two models I know of). They are fundamentally very similar (I can feel the flamethrowers being aimed in my general direction as I write this) systems. The A1 is the "official" successor, the pegasos is a rival compatible. Both use form factor motherboards and are designed to take normal PCI / AGP cards.
Unfortunately, there is a bit of a divide across the userbase, so I'm not going to compare them any further because I don't want to incite a flamewar ;-)
There is also AROS. Im sure a guy called "bloodline" will be here shortly to explain that option :-)
Anyway, have fun!