The 16 gauge is as dead as the 28 gauge. As in, neither are dead, not even on life support. They're just not as common as 12, 20, and .410.
With reduced recoil and specialty tailored loads for 12 and 20 gauges and .410, they do kinda sorta displace 16 gauge, and to a lesser extent 28.
Specialty loads for the more common shotgun chamberings have lead to the drying up of 16 and 28, but they're not going away. Just going to continue to be less common.
I'm not much of a hunter, and what little wingshooting I do, I've found 12 and 20 work. Can't justify the expense of a new 16 or 28 for the rare hunting trip I do take.