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Various factors involved there - the general slowness of Amiga OS4 development, in particular there was quite a delay in developing some of the required drivers (audio IIRC was an issue, and they didn't want to launch it without fully supporting all the included hardware as the community didn't take well to that in the past). Then, when drivers were finally on the way, the board could no longer be manufactured because some of the components had been obsoleted in the meantime. Reworking the design for new parts was being done, and then the perfect storm of a semiconductor shortage and a global pandemic hit, which is where we are now. That's the vague story as I understand it anyway.
As for the boot classic OS option, I would speculate that that would let you boot straight into an emulated 3.1 environment. OS 4.1FE already comes with a full 3.1 installation and an emulation environment - currently it is used for launching non-system-friendly software, ADFs etc. from the 4.1 environment, but it's not a huge jump to imagine having it as a boot option.
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