> "Just use LHA format archives. It’s the standard compression tool on Amigas and even though there are modern (and technically better) alternatives ..."
LZX had supplanted LHA already by 1994.
> "a 7Mhz 68000 16-bit CPU"
It's a "16/32"-bit CPU, since it provides 32-bit operations/immediates and 32 bits worth of data- and address registers. For all practical accounts of programming the CPU it's a 32-bit machine, no matter the bus shoveling data 16 bits at a time behind the scenes.
> "... but all of what follows is in the context of developing a systems tool in C as that's the language of AmigaOS"
Not sure how to interpret this. You're in no way locked to C if you want to program for AmigaOS. You can load and interact with all of the libraries etc. of AmigaOS in Pascal, E and what-have-you, since there are headers available for almost any language you may want. Even assembly, which for the Amiga is/was a far more common choice for OS-friendly applications than people think.