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Basically, ppl who record the audio "in camera" are not that picky about the sound.
Anyway 16 bit is better than AGC compressed sound, although you aren't really getting 16 bit when recording live as you have the safety factor--at say 6dB per bit you will be luck to average 14 bit on a live shoot. And it is in that area around 14 bits and below where the sound gets chunky when you normalize the audio, or add effects, specially room simulation or, for example, parallel compression. 24 bits just gives you all the digital room you need.
I just can't imagine using anything less than 20 bit (realistically, 24 bit) if you want to process the sound in any way.