It would be easier to convert the M-16 to a better caliber. There isn’t a battle rifle fielded that is more accurate than the M-16.
Its potential for good accuracy is primarily within 100-300 yards. Accuracy degrades beyond that due to the light bullet and the low ballistic coefficient. It's ability to cause devastating wounds beyond 300 yards also degrades especially from shorter barreled rifles.
Furthermore, oh8eleven, the routing of hot gasses into the chamber remains a design flaw. Even after about 50 years, it remains a poor design.
Bottom line, it has been fifty years now and the shortcomings of the M16 have been well documented after every conflict it has seen. I think we could do better and I think the 5.56 mm NATO round has proved repeatedly that it kind of sucks in general.
If I had to rush out to meet an enemy, I would absolutely grab my FN FAL in 7.62 mm before I would grab any of the direct gas impingement 5.56 mm rifles in my collection.