You can operate a conventional locomotive with a Legacy Powermaster and the Base-3 system the same way that you would on a Base-2/Cab-2. However, if you have an older TPC, you will need a SER2 module to complete the connection (PDI cable from Base-3 to SER2, and serial cable from SER2 to TPC).
It is my understanding that the CAB-3 app does not currently support the control of Powermasters using the TR assignment Apparently this is a bug that is being addressed in a new release. You might be able to assign a Powermaster as an ENG though.
Hopefully, for the sake of conventional operators, Lionel will implement CAB1 control mode correctly on the CAB-3 app. Per TMCC specs, CAB1 control mode should NOT include momentum. This is exactly how CAB1 mode behaves on the CAB-1L and CAB-2 remotes. Even the MTH DCS app does this right. However, when Lionel released iCab, CAB1 control mode was not implemented correctly and included momentum whether you like it or not. Even with low momentum, it is very frustating to contend with the lag as voltage inches up and down in response to throttle inputs. Operators of postwar trains require immediate, positive and responsive control of voltage to jump start Pullmor motors and E-units, and to control their speed, just like on a postwar transformer. Or as a minimum be given the choice to turn off momentum if they don't want it.