I don't think I'm anywhere near 16 px for my font size. More like 3! But, wow! it certainly stands out reading it on that page. I may have to rework at least some of the website! (Like the policies!)
Unfortunately, that means a lot more scrolling!
I use 14 point in e-mails. I HATE to receive e-mails with a tiny, tiny point. Websites are the same. Books are the same. If I pick up a book and see it uses tiny print, I'm less likely to read it. Yes, that's because I want to finish quickly and a 1" thick book with bigger print means a faster read than a 1" book with tiny print. It's human nature.
People these days just won't take time to read a lot of text. Better to use a little text, and make it bigger. People are a lot more likely to read it.
Use more photos!
This really depends on the pixels-per-inch resolution of the reader's screen. It used to be that a standard screen resolution was 72 pixels-per-inch, in which case a 12-pixel text size was the essentially the same size as a 12-point type font. But now screen resolution is all over the map, so there is no good direct correlation of pixels to the actuall size of type -- But that said, if your screen has a 96 pixel per inch resolution (say), then you DO need 16-pixel text size to be equivalent to a 12-point type font....