Depending on the specific 16ga, you can use heavier loads than you can in a 2" 12. Those guns fall somewhere between a 28 and a 20 when it comes to shot charge. But since a lot of people hunt grouse with a 28, why not?

One thing for sure with a 2" 12ga: make sure you take enough shells with you! But then that's pretty much true of 16's and 28's too, and also 2 1/2" 12's.