The 486 is basically just there for older and/or incompatible CPUs or chipsets. I'm pretty sure it lacks SMP and PAE support, along with huge pages.
While many older CPUs actually run the 686 kernels fine, it's becoming an optimization issue, since more modern CPUs benefit from different instruction mixes and orderings, and while they support the old instructions, they can run them slower directly, microcode them, etc.. Overall, it probably doesn't matter for >99% of computers and users, but if the <1% it does matter for can show compatibility or performance differences...
Not quite: 486, Pentium, K6, and VIA/Cyrix 6x86 type CPUs, for the now-common i486 kernels. 386 and up for i386, obviously (other 386s were direct clones, while some 486-class CPUs were separately developed, much like later CPUs)
The Pentium II is the
very definition of a 686. The Pentium Pro, Pentium II, Pentium III, and Celerons prior to Netburst, along with the Pentium-M, Core Solo/Duo, and their derived Celerons, are all
definitively 686 processors, being based directly on the P6 core, and all supporting only minor ISA revisions over the years, from the PPro (the Core 2 still had P6 bits and pieces, but I think x86-64 is a good cut-off). Also, AMD's Athlon and Duron lines, through the Athlon XP/MP, would be considered 686-class, along with P4s.