I think this is wrong. Publishers publish games to make money. To maximize profit, code to the lowest common denominator. Even when the A1200 was at its peak, a lot of software was still produced to be compatible with the A500.
While there's something to this, it doesn't always hold out.
You didn't (and don't) see PC developers develop games for the lowest common denominator. You see them develop games for the smallest minority that has high end machines.
However, in that case, they are looking at selling their games at a premium to the high end gamers. Knowing that over time, the other users will upgrade and eventually buy their games for $20 or so..
I do that with PC games. My PC is terribly outdated. At the time when Neverwinter Nights came out, I probably could have run it, but really really badly. And I doubt I would have paid new retail price. A bit later, I finally get a new (inexpensive, but decent) video card. Now(er.. the "Now" that was when I bought it :-), Neverwinter Nights is $20 and runs pretty good. (The native Linux version is still running fine on that same machine).
That couldn't have happened on the Amiga the same way. Yes, a game could have been written (some were) that ran, but just barely on an unexpanded Amiga, but much better on an expanded one. However, I paid about $40 for my PC video card. Let's say $100 even for comparison.(I am cheap even..) Now, for the Amiga to run the game better, it would either need an RTG card (not really an option for most, but) at MUCH more than $100 (no idea how much those cost at the time??) or an accelerator with RAM, and those were $300 up.
The LCD (lowest common denominator) is only in play because the upgrade options were too expensive for the Amiga.
Fact is, non-LCD did work for the 1M ram upgrade. Developers did start making games that required more than 512K on the Amiga. When games started coming out requiring 1M, people did buy upgrades to their Amigas to play them. However, an upgrade to 1M was relatively cheap (cost of a new video card today). Upgrade beyond that was the problem.
desiv