I have seen a lot of pictures where soldiers/Marines had M-14s, and not all were for sniper work. Surely the current variant of the M-16 works well enough in the desert, so I can't explain the large numbers deployed.
Some prefer the larger caliber. The M16 in use now uses a heaver, more stable projectile than used in vietnam. The current 62 grain bullet shot from the 1:7 twist barrel used now does not tumble in flesh like the 55 grain/1:12 twist vietnam era rifles. The M14s .308 is more lethal at longer ranges. The heavier .223 M16 loads buck wind better than the old ones, but they just cannot match the .308.
I just guessing, but better ballistics at long range (.308 Vs .223)? Deserts are largely lots of wide open nothing, making long range shooting commonplace.
Regards,
GtG