The CD32 chip actually had byte-per-pixel (chunky) graphics modes but the omission from the 1200 was fatal.
I agree. Unfortunately, even with chunky graphics and/or 3D foresight, 68k would still have been a dead end and Commodore would still have been mismanaged into death. It’s fun to dream though…
There were no tech problems IMHO, it was all mgmt problems. They could have chosen a handful of completely different (edit: mutually exclusive even!) tech paths and still have won, but instead they chose to do almost nothing except bleeding the company dry.
Edit: I don't mean that their success was certain if they executed better. I mean they did almost nothing and got the guaranteed outcome: failure. (And their engineers were brilliant but had very little resources to work with.)
Was it necessarily a dead end? Considering the ways Intel and later AMD managed to upgrade/re-invent x86 that until x64 still retained so much of the x86 instruction encoding/heritage (heck, even x64 retains some of the instruction encoding characteristics).
Had the Amiga retained relevance for longer and without a push for PowerPC I don't see a reason why 68k wouldn't have been extended. Heck the FPGA Apollo 68080 would've matched end of 1990s P-II's and FPGA's aren't speed monsters to begin with.