Yes CD32 all the way, Mouse port on the side as well as Keyboard port, Has S-Video outputs & there are so many CD32 games on ebay going quite cheaply,
There are some compilations around on the net which include downgraders.
As far as writing your own Bootable CD's, you need to write a special CD32 Bootblock to acomplish this.
try a bit of googling, see what you find.
I agree with Zetro the CDTV does look better but the CD32 does outperform it, fitting a CD32 inside a CDTV would be the ultimate solution.
Too slow Harrison beat me to it & in greater depth, Nice one!!