Our 4 year old has been riding his 12.5 since he was 3. This spring, for the first time, we noticed that he was looking a little big on the 12.5, at least when he stands up. Finally, a few weeks ago, my wife mentioned that she had turned the speed to full, and he was still looking like he wanted more.
Owen was at the door when the UPS man knocked, and when he saw that big box, he was excited just to figure out what was inside. I gave him the packing slip and asked him to see if he could recognize any words... "Daddy, that says OSET, they make my motorcycle!"
As soon as I pulled the front wheel out of the box, I realized how high quality the components are - I am really impressed. The assembly was just as easy as the 12.5, and only a few of the controls had to be adjusted to suit him. The brakes felt so great. (I did have to take it on a safety inspection ride, of course)
With the speed dialed down, he got on, and could just put the ball of one foot down, and toes on the other, but it is fine - He gave it a twist and off he went. He immediately looked confident and was running laps all over the yard. With the bigger wheels and longer wheelbase, the stability is vastly improved. (OTOH, it does take a bigger area to make a turn.) In 10 minutes he was asking for more speed, and in 20 minutes he was standing, then standing with one leg! Going over a 12"x12" paver used to upset the bike, now he doesn't even notice it.
If you are considering the upgrade, it is well worth it. As long as your child is tall enough to get a foot down, they will probably feel more comfortable on the 16, and the components are so much better.
Pete