I've been reading up on this chip and it's quite nifty. There's drivers for it for the Atari ST, Apple II and TRS-80. The CMD-FD-2000 uses one too.
I suppose the best place for it for now on a C128 would be the option ROM socket, as I don't think any of the custom kernals out there (or anything else for that matter besides the FD-2000) has support for it. In other words, the ROM socket it needs to live in is determined by the driver, and since there's no driver...