16-bit is better than what scandoublers designed for OCS/ECS can do (12-bit), but I doubt it handles all the funny resolutions the Amiga can put out.
I've got a rough design in my head for a hybrid internal/external 24-bit scandoubler. Basically a CPLD, some SRAMS (they don't make 5V DRAMs anymore), a Triple 8-bit DAC, and a Triple 8-bit ADC and few latches and tri-state-able buffers (mostly so I don't need a CPLD with a ridiculous pin count). The ADC and 23-pin D-Sub connector could be easily dropped to make a less expensive internal-only version (the PCB would probably still be the same unless I hand manufacture them).
Might play around with it a bit to see if I can get something working with some spare parts I have here. Don't get your hopes up though.