Yeah, I think it's a bit harsh calling the old 1970's mag wheels "Fugly", they were used on race bikes because they were more rigid than spoked wheels, which of course is why you don't see spoked wheels on modern race bikes, but they were horribly heavy and most were not suited for tubeless tires, and I still remember when Ducati recalled all the (quite beautiful) Mags that they put on their original bevel drive 900SS, Darmah ("Drama" as they were cruelly, but accurately nicknamed back then) etc, due to stress fractures.
It wasn't until Honda dared to use the Comstar mag wheel that they themselves designed, first on their race bikes and then on the CB750F2/F3, that you could get a light alloy and steel wheel (later models had all alloy wheels which were lighter still) with several times the rigidity of a spoked wheel that would also accept tubeless tire application. At the time they were a revelation, but many of the "form over function" media panned them, which is a shame.
I have to agree with the majority here though, 16 inch "Hog" wheels were just that, a 16" Harley rim laced to a Honda hub to give the bike that "phat-asss" look. I've got one on my K1 with a 150/90 - 16 Bridgestone BT45 tire on it, and it looks great, and the bike handles fine, but the K1 is a "laid back Kruiser", (albeit with a beastly 836cc race engine) not a Cafe racer like yours, and my opinion (well, you did ask for it........) is that all the cafe's I've seen with 16" rear wheels look like an el-cheapo compromise because the owner wanted a wider rear tire, but couldn't afford a decent wide 18" rear rim.
Of course, it's Carpy's fault for sticking crappy old Hog wheels on his bikes and flogging them off to the guys who weren't around "back in the day", and convincing them that an air gap of twelve inches or so between rear tire and fender is "de rigueur" for Cafe bikes, when of course, the original cafe guys would cringe at this "revelation". But hey, you can't blame a guy for trying to make a living, and what his bikes lack in quality components, he makes up for with his excellent salesmanship. Cheers, Terry.