A Hmmmm, Why question.

In the older double guns the 16 gauges can be real bargains, so unpopularity has a bright side. Otherwise, yeah, the 3" 20 pretty much replaced it.
 
I bought a sweet 16 A5 Browning when I was 16. A couple of years ago I bought an action and sawed off barrel for an older one. Barrels are expensive and hard to find. I prefer the 16 for grouse hunting and whatever needs to be shot around the house. It's light, fast and and very comfortable to shoot. The choices in shells have been poor since the 70s. I have 4 - 12s but have always preferred my 16. Especially for upland game.
I also have a sweet 16...belonged to my Dad. The only trouble I've had with recoil is when I shot it with the bushing set for low brass and shot high brass. An A5 will let you know if you make that mistake😫
 
Probably a combination of marketing and that there's not much of a gap in size and performance between the 16 and the 12 and 20, meaning it's kind of in the middle and isn't much different than either.

If you want to blow the 16 gauge up you just need to change the name to 16 Creedmoor, publish some swanky ads, and watch the sales explode.
 
I've got a 16. Love it. It carries like a 20 gauge & hits like a 12. Never had a problem finding shells for them Kent makes a good bismuth load for them if you hunt in areas that disallow lead.

There's a dedicated following to the gauge. it has it's moments of resurgence, but ultimately, it's a specialty shell, like the 28, which is enjoying it's resurfaced fondness.
 
A few years ago I got to shoot one of the new Browning Sweet Sixteen at a gun fair. I thought it lived up to the reputation of the original and really shot it well! If I wasn’t married to the handful of 870’s in the closet, and if I was more of shotgun guy, I could see the desire for it. But alas I shoot my 870’s fine and see now reason to upgrade from the pump-guns.
 
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