Thank you for doing this.
Gameplay really feels (from the video), amazingly done.
Once you place a grab movement, that will be it.
You said 68000 is too slow. What about faster 68k, with some additional fast ram?
Once you post a demo, I'll gladly test it on my Aca 500 + 68k - 42Mhz, and 7MB Fast.
Although, as jotd mentioned, I wouldn't say that anything is wrong if you go straight to the AGA port.