Perhaps the OP is after a hot rod with a cafe flavour...
I think the 16 rear started, for traction and longer tire life... I can remember when the Yokohama 4.50 x18 came out.. HUGE tire!
They do fill out the back end in a way no 17 or 18 will, easier to avoid rim damage as well..
As far as handling, I know you wont see them on roadracers, but I have seen people riding pretty damn fast wuith a 16 rear..