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Random,
FAT16 may make it faster or it may not. Just try it out, it depends a lot on the card, and the device the card is used in. Some cards are not that sensitive to the cluster size. Others, like my Transcends, are. Formats without Backup FAT seem to be faster, too. (I did not come up with this. Menneisys did, and my observations since I read his article confirm his statements with only one exception so far.)
"SD was not designed for FAT16" has very little if anything to do with it. I am not saying the statement is right or wrong. But it has no practical relevance. Use whichever format works best for you; which means you'll have to experiment.
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Transcendental x50v: 4 + 8 GB SD and CF Transcend cards
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