Sure, its maybe not as elegant at heart as 68k or even ARM, but when I say "nicely designed" I wasnt really talking about instruction sets, but rather the manufacturing perspective. And x86 of today is a far cry from x86 from yesteryear anyway.
And as you mentioned development software takes a lot of the "quirks" away from a coder (except asm, but that's far from a prominent language these days). Theory and practice are pretty different things. (ie. asm will in some places be faster, but not many people code in asm).
Now in regards to raw power, I think a lot of people disregard hpw useful it can be. Necessary, no, but noticable, absolutely. While its true that for Joe Public raw performance for things like Web Browsing, watching videos, using facebook, etc. is sufficient, it doesnt stop the fact that it is a nicer eexperience, even for those tasks when more power is available. Multitasking for one thng. Joe Public is inclined to "double click this, double click that, do this while thats loading", and so on. Better performance obviosly helps things here. Things like compressing/decompressing files happens often on a computer, and that is much quicker with faster hardware.
Graphics are popular these days. Oviously 3d is much quicker with faster hardware, but even filters for gfx apps (photoshop/paint shop pro/gimp/etc.), not to mention things like flash. All can benefit massively.
It's not so much that its always necessary,but rather its nice to have for when it is.
The Amiga, with its legacy of being great for media centric things isnt a machine well suited to "getting by". Yes the OS runs nicely on lower spec gear, but Id rather all software I want to run has the potential for running in a way Im happy with rather than using a less friendly system, just because its hardware is better suited to the job.
If amiga was a games console, or a netbook, or a slate device, etc. then Id be happy making do, but its not. It's a great desktop OS for being creative with, which requires raw power at times.
All in my opinion/from my perspective of course.
@mechy
There's a good chance youre not actually interested in "truth" here about AROS, but you was so far off the mark I cant refrain....
AROS has nothing to do with amiga you say? How about the fact it runs on 68k Amigas and runs 68k amiga software without emulation? (does OS4?). It also runs on Sam boards. It uses gfx.lib and cgx. Is api compatible with os3.x (compatible, not restricted to as some ppl like to throw around). Uses poseidon as its USB stack. Uses effectively amitcp (albiet upgraded) for tcp/ip stack? Software written for os3.x needs to simply be recompiled to run (you know, like OS4 unless its using emulation for 68k (like aros does when not running on 68k cpu)). Uses MUI/Zune. It's pretty fair to say it has as much to do with amiga as os4.x, the only thing missing is the trademark. To say a system whose purpose for being created was as a compatible re-implementation of amiga os is not just naive, its somewhat bizarre. Its pretty much like saying ReactOS has nothing to do with Windows, or Zeta having nothing to do with BeOS.