The FAMAS does retain it's range better, the drop off doesn't come as quickly as on the 16, however the reload time is longer by almost a full second, and over a full second comparing empty to empty. The minimum damage for both remains 30, with player health at 100 in normal modes, therefore without stopping power it is correct that a 3 burst will kill more of the time with the FAMAS HOWEVER with stopping power the difference effectively becomes null as both weapons will kill in a burst at all ranges theoretically.
That's why I use the M16 with SP, and when I'm using something else, usually CB Pro, I go FAMAS for a longer range map and particularly silenced but then neither are one bursts without SP at any time, as stated though, the FAMAS burst is faster but the time between each is higher so when you're going for multiples the M16 is generally superior and I'm not one to be catching people 1 on 1 all the time. That said if you are using stopping power which is the best way to use these weapons alot of the time, you should be getting 1 bursts with both if you're accurate.
The TAR, SCAR and M16 share the exact same power and drop off at range, so by no means is the M16 weak, simply the FAMAS retains it's range better which is perhaps why it's given as a starter weapon. In short comparing the M16 to the FAMAS the M16 has:
Slower burst, but faster between each burst
Same maximum and minimum power but drops off faster at range (not massively so though)
Much faster reload time, 0.8 faster minimum (not including Sleight of Hand)
Rumoured improvement of accuracy with M16 + Holo, more so then others
Slightly faster swap when both changing to and from the primary
Overall I think the M16 is better suited to the fast pace of normal gameplay, being a superior slayer weapon because a true slayer won't be shooting at one person at a time all that often and likely needs extra ammo from Scav Pro so Sleight of Hand isn't available to negate reload times. However, on a more open map (Wasteland) or in a 1 on 1 setting like that of SnD, an accurate shooter may well find more success with the FAMAS. Essentially the M16 is a better aggressive weapon, which doesn't sound like a burst fires ideal situation but I do spawn trap, I streak and I take on way more then 1 person at a time alot of the time, I need those quicker bursts, faster reloads and often faster swaps to make the most of that, I can't afford Sleight of Hand alot because more then once I usually get a nice streak going and I burn ammo fast even on burst and I don't sit around a mile away with them, I play the mid range.
Side note: The M16 retains the same power figures (though I can't quantify range) as COD4, and only ONE Assault Rifle this side of semi automatic had the same amount of power, the AK47 (excluding the MP44 as it was a little different). The AK also retains that power in MW2 bringing it in line with the SCAR, TAR and M16 but it has idle sway not present in any other Assault Rifle hence making it inferior then it once was. This essentially means bar the FAL, the FAMAS is the most powerful as it is the only weapon which appears to retain it's 40 power longer then the others which all appear to be the same. So, is the M16 weaker then it once was, or have other weapons caught up? IF I could get my hands on the distance figures for MW2, which I can't, I could tell for sure, but the stats seem to suggest it is very much the same, it's just now it has alot more competition with 3 weapons matching it's power and 1 surpassing it. Power wise it used to have 2 to compete with it on COD4, not 4, you could also discount 1 from each game as they're both horrifically inaccurate with the MP44 and AK47 from MW1 and 2 respectively.