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Jeff,
16 bits vs 12-bits is ~ 24dB dynamic range assuming good engineering practice in both implementations. If solar cycle 25 actually happens as predicted then we may see HF signals which could test a 12-bit ADC.
FWIW there was a massive E’s opening on 2m yesterday from the UK (Cornwall) to Finland, I was seeing a station OH5LK 70dB above the noise, a local is 104 dB SNR on the back of my 2m beam.
So you can do a very great deal with just 12 bits, but more is always nice to have.
Simon Brown, G4ELI