I left in the relevant part of your post. Personally, no, I wouldn't watch a top 16 league. My college football fandom is tied to regionality, rivalries, and the craziness and pageantry that is unique to the college game.
There's no way to get 16 teams that feels at all regional, and you'd have also necessarily cut off most rivalries (a few big ones would remain, for sure - OU/ UT, UM/ OSU, etc.). But you've also completely neutered the potential for the holy-shit upset wildness that makes college football so, so much more damn fun than the NFL (think Purdue beating the shit out of Ohio State in the Tyler Trent game), not to mention the fun-as-hell pageantry of the smaller schools (the absolute mayhem of College Gameday opening at WSU with several hundred crimson flags flying). I love that shit.
I completely understand if people would watch the 16 team league, it's just not for me. It would be nothing but a watered-down NFL, and I already watch Dallas play on Sundays.