IMO the
travesty is crippling FP16 on consumer GPUs for exactly the reasons you cite. And given that AMD's Vega GPUs apparently will possess full speed FP16, it appears to be yet another in a long line of arbitrary performance cripplings for the consumer space that is IMO the most annoying feature of CUDA development.
But while FP16 is useful for audio and imaging, FP16 nearly killed NVIDIA over a decade ago* when it lacked the dynamic range for DirectX 9 HDR effects in contemporary games without banding. FP32 was more than enough for the task, but power hungry, and thus NV30 could be used to figuratively fry eggs while AMD GPUs had FP24, which was just enough for these effects.
These days, it's all going in the opposite direction w/r to deep learning, but I find it ironic that INT8/INT16 is missing from the Tesla flagship P100, but present on GP102 and GP104, the consumer GPUs (and yes, I know about Tesla P40, but that lacks fast FP16).
I agree with the top poster that Intel could make quite a comeback here given how far it's currently behind. I also agree that it would be hard to dethrone NVIDIA without higher bandwidth memory, but I don't think that's necessary, a bloody nose is more than enough to turn heads IMO.
https://en.wikipedia.org/wiki/GeForce_FX_series