@RedWarrior
First, let's clear up a misperception you have:
The Pegasos is *not* an OS. The OS is MorphOS. The Pegasos is a motherboard that runs MorphOS.
Genesi is the company which produces both the Pegasos and MorphOS.
The Pegasos uses commodity hardware, such as off-the-shelf ATI Radeon video cards. Animation runs fine for me, including compressed video which your A500 could not handle. The Software base for MorphOS is pretty decent, being able to run your old Amiga software as well as a growing list of new applications. In fact, the Pegasos has a bundle of software called the SuperBundle.
I see a bright future for the Pegasos. So much so, that I signed on to work for Genesi at the end of last year, and have not regretted it since. There is a real product here that does pretty much everything I need. I can't wait for the second generation Pegasos motherboards to arrive shortly.