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With modern retina displays it's not really an issue. 16x16 icon on iPhone 8 display will have a size of 1,2 mm. 10mm icon will have 128x128 resolution with enough pixels to provide every detail.

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Except high density displays are not really that common outside smartphones and the Apple world. It's probably safe to say most people still work on regular 1080p monitors at 90-100 dpi or at best on 1440p with slightly higher dpi. So an SVG with design resolution of 512×512 will look like a blurry mess when scaled down to 16×16. We'll get there eventually but optimising for low-density displays is still a very valid and reasonable thing to consider.

Most < 500€ laptops I see in stores are still 1366*768 - and that's what people buy most - eg stuff like this : https://www.ldlc.com/fiche/PB00277098.html

Yup, 1366x768 is the most popular desktop resolution, although 1920x1080 is closing the gap:

https://gs.statcounter.com/screen-resolution-stats/desktop/w...

Even smartphones sometimes have lower-resolution displays. 720p resolution is still rather common at the low end, and that's something where a 'pixel perfect' 16x16 icon can still make some sense.

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