The funny thing is that 16 bits wasn't enough.
We thought it would be, back then. Just use 16 bits for each character and we can return to the joy and simplicity of a fixed width encoding.
That didn't work out. UCS-2 was a fixed width 16-bit encoding, but it it had to be extended into the variable width UTF-16 to get more code points. You get the bloat of 16-bit data, incompatibility with ASCII, and variable width characters too.
You have to go all the way to UTF-32 to get back to a fixed width encoding.
So UTF-8 really was a smart move. Bite the bullet on the variable width, but make it so you can always find the beginning of the next character even if you start in the middle of one, and make it backward compatible with ASCII too. Genius.
https://en.wikipedia.org/wiki/UTF-8