yes 16-bit allows for a much, much greater depth of colours across the image. 8-bit is 256 shades each of red, green and blue (16.8 million colours), while 16-bit is in the trillions of colours. 16.8 million is probably fine for general concept art, but from what I've read it's still not adequate for very precise image editing where extreme subtlety of gradients is important, esp. with photography.
All jpgs are 8-bit, so what we usually see in the Finally Finished forums is hardly compromised in quality from a general visual perspective. I'm just curious to know if using 16-bit is more of an exercise for photographers looking for hyper-editing abilities, or if there are painters who feel it's a necessity and can explain why. My own impression is that it's probably not necessary for most painters, but I'd love to hear other opinions. You're right, though, it slows the computer down.

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