Well, I got a PegII when the A1's wasn't available. I wasn't at all sure that I would like MorphOS but after a few months it really grew onto you. I can run all my usual software (exept for a MOD-player.. still looking for something like HippoPlayer or Eagleplayer for MOS.) plus all the nice PPC-apps someone else mentioned.
I only have two grips with MorphOs and they are quite silly.
1. Sometimes when I move something from the Ram Disk to Work: the Ram Disk decides to meditate... nothing else to do than reboot. Never understood why it does that, but probably something i've fiddled with.
2. I can't for my life figure out where to change the mouse pointer. :lol:
anyway, if you are in the situation that you feel your A1200 is too slow then by all means buy a Pegasos. It's fast and it's very amigaOS-like. Be warned thought, that it's not entirely AmigaOS-like, you will find some annoyances, I'm sure, but after a while you just discover that it's another way of doing something and you start to like it.
E-UAE by the way, on my 1Ghz PegII, is running at fully acceptable speeds. I even run a full AOS3.9 emulated enviroment on it sometimes, and it slows down only when opening a drawer with lots and lots of files and icons.
oh, and Ambient is quite beautiful when themed.