Bleh, the last time I tried messing around with open source was for the M68k and I gave up on that. Of course, I didn't know as much then as I do now so it might work. Unfortunately, I love using IDEs (who doesn't?), so the 128k limit is pretty restrictive since I'm using these Coldfires for things that dsPICs can't handle, and those have 512k of flash memory. The compiler is open source though right? So where does the memory restriction come from? Or is it for "their version" of the GNU compiler? I was looking at Sourcery G++ and their IDE is much more affordable than Metroworks' Code warrior ($400 vs $2500), and their version of the command line only compilers are free.
That said, Arm vs Coldfire? For use as general robotics controllers and image/frequency processing where more of a computer is needed than an "intelligent periphreal" PICs suffice.