You probably won't be running fp16 anything locally. We typically run Q5 or Q6 quants to maximize the size of the model and context length we can run with the VRAM we have available. The quality loss is negligable at Q6.
And q8_0 already halves the memory usage compared to fp16.
One of the ollama Devs called the quality impact negligible at q8_0: https://smcleod.net/2024/12/bringing-k/v-context-quantisatio...
But perhaps quantifying the KV cache does not scale as gracefully as the model itself?