The Falcon was a nice machine (I still have one!) although it suffered from the characteristic Atari penny-pinching: still no MIDI thru port (on a machine which was otherwise amazing audio-wise - same DSP as the NeXT!) and while the new video modes were great, they used comparatively more RAM and were somewhat held back by the fact it still had a 16-bit data bus.
The OS didn't take anything like full advantage of the hardware, but any serious users at the time would have piled on extensions/addons/replacements like MagiC.
Massive penny pinching. The original design is here:
https://mikrosk.github.io/sparrow/falcon_specification_19920...
The 16bit bus limitation seems to stem from the RAM configurations - 2mb rather than 1mb would be the default config which cost more. As a result that kinda crippled the videl - only 16bit truecolour, lower clockspeeds on the CPU and videl, and slower ram access.
8 bit chunky mode was also planned, and a GPU - might have been the Jaguar TOM chip. I think MultiTos in ROM might have been planned at some point.
The OS didn't take anything like full advantage of the hardware, but any serious users at the time would have piled on extensions/addons/replacements like MagiC.