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My Duo 280c does 640x480 at 256 color. The odd 400 resolution is only if I switch to higher color depth, not many 68k games will support higher color depth beyond 8 bits, and some games that doesn't complain about color often runs much slower so I leave mine at 640x480x8 permanently.
Hard drive is not a problem, there are CF and SD adapter that will fit the 2.5" connector.
RAM is the main problem. There are very few on eBay and good luck finding one bigger than 8MB to go with built in 4MB. I got lucky with mine long ago when I bought a non working "part" 280c to fix up mine.
Duo does support external keyboard and mouse with a mini dock or with an ADB port hack. But in the long run, a 550 or 575 would be better 68k color all-in-one. And SE/30 is probably the best B&W all in one.