Speedball 2, DeluxePaint IV, and any of the shadow of the beast games. Hybris, Stunt Car Racer, and Lemmings.
Desktop software? If no harddisk, I can't recommend much, maybe a C compiler or something that works OK with 1 or 2 floppydrives.
You could use something like WordWorth or FinalCopy II for desktop publishing with 1mb chip and 2mb fast.
If I had that system, I'd use KS1.3 WB1.3 and play a lot of games.
