I haven't seen 16mm in two years. As far as HD goes, it may provide a better quality picture than standard DV, but it is still a relatively new format. There's not a lot of equipment around, it's more difficult to use and much more expensive. Again, someday it may become the medium of choice, but no one is predicting exactly when that day will be. Andy Pratt of Andy Pratt Negative Cutting in Seattle works primarily with film, not video.
Video has a ways to go before it becomes close to the appearance of film as a final product.
Yet he readily admits the buzz at a recent film festival he attended was all about shooting video and making it look like film. Pratt feels the decision on whether to use film or DV must be based on the goals of your project. If it's the former, he feels you'd be better off shooting on film. The success rate of DV to film projects has so far been minimal, though that's not true in the documentary world. Several DV-shot films, including the highly touted Buena Vista Social Club, have been nominated for Academy Awards.