it wasn't 100% compatible with the 68040, in such a way that it didn't work in Mac OS, but did on Amiga as Amiga didn't use any of the incompatible code.)
Yes, no, almost true....
On bootup the 060 has an incompatible MMU/cache setup that would make an Amiga (and a Mac too) crash.
68060 cards had a little code in their ROM disabling cache which would later be reactivated by a special library.
The new AmigaOS3.14 has that code to, so if you have that as a Kickstart-ROM you can run an 68060 in a modified 68040 card without ROM.
All these setups will run ShapeShifter (aka MacOS) without any 060 specific patches.
Or in short if someone had wanted they could have done the same as an CPU-upgrade for 68k Macs.
But the 68k line didn't die - it just became a "mobile" CPU line. The original Palm Pilot used a modified 68k
DragonBalls are literally 68000s, thats like Intel selling you a (superlow power) 80286 today.
ColdFire was highly incompatible in ways that can't be 100% trapped in SW or HW. Stuff like reused opcodes, missing opcodes that don't trigger a fault and a different format for FPU data.
Also performance for these was always way below PPCs available at the same time.
The Amiga-CF card you are most likely referring to was 100% vapor ware. The guy just placed a few components on the PCB with no clue how to make them work in HW or SW.
Another project by Elbox wasn't much better as it could only have worked by running a full 68k EMU, hence superslow and could have used just any other CPU to achieve that same goal.
On top of that it was mounted behind a PCI backplane with no direct access to the AmigaHW, so it would either have to emulate those too (why not just use UAE...) or have a helper OS running the onboard 680x0.
Now, them Atari guys did pull it off with the FireBee but TOS was/is a much simpler OS.