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Heh, it's funny to see this late-nineties debate get re-hashed here. Also kind of fun. If it were true that there's no audible difference between 16 and 24 bit, companies like Alesis, Otari, ProTools, etc. wouldn't have spent the last 15 years ditching 16 bit like an old pair of smelly sneakers. (better metaphors welcome). Seriously, anyone who has sat down in a real listening environment for 5 minutes A/Bing 16 vs 2…
Yes, and anyone who has ever sat down infront of an LCD flatscreen watching their favorite movie on DVD/BD using gold-plated $200 HDMI cable instead of $4.99 Walmart HDMI cable see the extra sharpness immediately. This is why non-gold plated non-OFC HDMI cables are down to $4.99 a piece from their original $49.99 during introduction.
You've never rented an expensive tube EQ during a mix to cover up 16bit's grating harshness from 10k to 15k. Or tried like mad to make the bass drum sound like a freaking bass drum and not a pie pan slamming against the back of a plastic trash can. And yes, we had good mics and pres, all standard studio stuff. Decent, not brilliant, converters, but it was the 16bit that was the problem. Getting those 20bit XTs for the first time was like walking into the Promised Land.
Sure, there's lots of marketing ploys out there, lots of snake oil. Moving up from 16 bit was not one of them.