Exactly, even if they settled with Hyperion on Hyperion's terms they could not have converted OS4 to run on the CECT phones. My guess is that CECT remebered the Amiga Inc. name and didn't realise that they weren't actually talking to the company that produced the Amiga computer (or anything really except a rebranded Tao Intent).
Now if CECT want to use the Amiga brand like Apple users the it's brand on mobile phones then the deal would have been interesting. Am "Amiga iPhone" to compete with the "Apple iPhone."
We'll never really know the truth, whether they we close, whether Hyperion could have delivered in Amiga's name. Just another puff of smoke from the Master Puffer, Bill....