That's exactly what the 68K-to-PowerPC transition was: Going from a widely used architecture (Mac, Amiga, ST, and others) to a brand new one.
Also, I don't recall stories of Macs being able to dual boot AmigaOS, and there was nothing like virtualization in those days. There were emulators, I guess. All of those other platforms were less common than Windows is today.
And there was never any threat that they would enforce sandboxing and code signing like a lot of people speculate for ARM Macs.
It really does sound like the ARM Macs are going to be less capable. It would be nice if that turns out incorrect but it's sure the way it looks.
They weren't. Amiga 68K systems had significantly different system architecture from Apple 68K systems, most notably in terms of their graphics and audio hardware.
> and there was nothing like virtualization in those days.
Weeelll... there were some special-purpose tools, but they were much more special-purpose than anything we call "virtualization" today. The Amiga version of Basilisk II [1] ran 68K code directly on the host processor, for instance. Later on, there were tools like Mac-On-Linux [2] which would run PowerPC MacOS on a PowerPC Linux system.
Ergo, it was dead end for Apple products.