Yea thay are considering the conversion on the M-16 , this round is said to be easly adapted to the m-16 chasis.
I'm guessing that they are looking at the cost , as it'll be alot easier to jst rework the gas system and bolt carrier than to totaly re-arm the military.
The M-16 got a bad rap in the begining of the Vietman conflict due to it being rushed into service and the government cutting corners to do so , the newer models that are all crome plated on the inside don't have nearly the malfunctions as the older weapons
this and being combined with better powder and a lower cycled rate makes this one of the best shooting platforms for a military weapon.
The main problem with the gun is the round the 5.56 round is a great little bullet and would work great if the proper bullets were used , the full metal jacket ball rounds that are used don't work to well on an un armered body , they just zip right through not dumping any energy , the same goes for the 7.62 NATO round , nbow if you were to load the 5.56 with a "Match" (for accuracy sake of course) you would see alot better terminal performance on live targets due to the violent expansion , hence making for faster kills.
I don't personaly think that this new round is going to work any better if the same ball rounds are loaded.