Btw this kind of shows that the Z80 is somewhat of a cludge, as both the Z80 and the 80 col video hardware would had been part of the design from day one, the Z80 would run faster with the 40 col video switched off, but afaik it doesn't.
Commodore sold a Z80 cartridge for the C64, my vague impression was that the Z80's integration into the 128 was
mostly unchanged from what they did in that cartridge. (Which seems to be much the same, again, as the Apple II's; they take the ~8mhz dot clock, divide it in half for ~4mhz, and then gate it with Phi.)... Which, leads on to this:
According to Bil Herd (see the linked newsgroup post) the Z80 was *not* part of the original design of the machine that became the C128. According to Herd the mandate was to try to make the machine "100% compatible" with the C64, but they kept running into all these problem children among existing C64 peripherals, one of which happened to be the Z80 cartridge. (Herd says the cartridge wasn't even compatible with all C64s.) By designing the Z80 into the board they could knock that one off their list because with it onboard it became redundant and... again, per Herd, having it there also gave them a magic get-out-of-jail free card for solving problems with some even ruder peripherals, like the Commodore Speech cartridge.
Anyway. Sure, if they *had* designed the computer completely around the Z80 from day one it would have been a silly omission to not allow the Z80 to run at full blast, but... taken in context, well, what they did makes sense. The implementation as it is technically checks the box of being fully compatible with a C64 *with the Z80 cartridge plugged in*. I mean, sure, there was probably all of one guy on the entire planet that would have been upset if he couldn't use C64 CP/M with SOFT80 to display a really terrible 80 column screen via the VIC-II, but it's a thing that would have been locked out if they forced the VIC-II to go to sleep when the Z80 was on. And, sure, they could have added circuitry to make it able to switch, but if the Z80 integration really was the late addition as described it at the least probably would have required another silicon revision for the custom chips. It's not as if such a change would have realistically had much of a chance of selling many more machines; CP/M-80 was
dead as a mainstream OS, at least in the US, by the time the C128 came out. I don't think it being able to run it twice as fast would have made much of a difference.
(* It's an oft-told tale that the Apple II was the "best selling CP/M machine in the US" for a year or two around 1981. The Z80 Softcard actually ran slightly slower than the Z80 in the C128; a few people mildly grumped about it, but there were still enough 2Mhz 8080 machines in circulation that such performance wasn't *unusually* pitiful. The early Kaypros, an even more recent machine, ran at 2.5mhz. Keep in mind that most of the software people would have run on a C128 under CP/M would have been written when, or even before, these machines were "typical" CP/M mules, because of how the CP/M software market was basically frozen in amber by 1985. In that light, well, doesn't seem like making the C128 faster would have been a real high priority.)