I've been thinking to install one of those in my A2500. I don't know exactly yet what I'm going to use it for, but it'll be "just because I can".
Yup, if you find one like this it would go right into an ISA slot. No communication internally to the Amiga, but you can connect via serial null modem. Maybe install a stripped down Linux, which you could access via terminal.
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I may add a large IDE hard drive (200GB?)
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Wow, that way you can have 6 copies of all C64/C128 software that's ever been made on a single harddisk!
I can have a complete library of Commodore software at my fingers, correct. I can also have a SID collection, MOD collection, graphic library (Koala, JPG, MacPaint, Ipaint etc) and anything else I can think of :-D Geos software can get pretty beefy.