My ears are burning
Road Avenger / Time Gal don't use CDXL per se, but a custom format. Having said that, it has identical limitations to CDXL given that it's just storing uncompressed audio and video. It doesn't really stream the same way that CDXL does, but buffers around 1-1.5MB of video/audio data from the disk, and plays it and updates game logic while simultaneously loading the next chunk (hence, there's a short delay at the start of each level).
I'd certainly be interested in some means of playing back compressed video within the limitations of a stock CD32! I'll keep an eye on the thread and pitch in if I think of anything.