Yes, if Commodore wanted to compete, the Amiga chips needed to keep up with Moore's Law. Every 18 to 24 months, the processing and display power should double or more. In 1988, the Amiga 500 and 2000 should have had something like AGA.

The article correctly points out that 68k chips fell behind the x86 series. Yes, chunky pixels are useful, and the display hardware should support them. But if the game requires the CPU to draw each pixel one by one, the hardware has already failed. Instead, there should be some specialized processors that do the work. In fact, that's what happened in PCs. Doing all of the drawing with the CPU lasted only about five to seven years, then everyone had GPUs.