I think different 16-year-olds need a different amount of structure around this. Also, different households will have different needs that a mature enough to handle it 16-year-old will understand that (saying 'all my friends have it' doesn't seem mature to me). It's up to how your teen isand how things are set up.
I don't "take my kids phone away", they put them on the cubby next to the couch when they're not using them. That's what they've done since getting them in Y7, it's what their father does when he's home, there or on the couch is where mine is during the day - I'm the only one that routinely takes my phone upstairs to bed as I have a worry about fires or something happening and needing it at night. None of my kids regularly take their phone upstairs at all, I can't remember the last time my 16 year old did and the closest my 13 year old gets is when she does dancing and video chats through the house for her own reasons, but our chargers are all in the front room. That's just where they go.
My kids all share bedrooms so I have to consider what will disrupt their siblings - they have vibrating under pillow alarms, for example, for different waking times. It's one thing to expect my 16 year old to self regulate, it's another to expect him to do it in a way that won't impact his younger brother in the same room. Even then, they're more than capable of staying up late without them -- as recently having found him reading aloud in funny voices to his younger brother at 10o'clock attests.
They don't seem the worse for wear without them and I don't find it controlling. It's hard to develop and maintain good habits with the ease and fun electronics give, finding ways to help teens develop them is difficult, but I don't think just their age is a good enough indicator of their ability to handle this. I left home and immigrated at 17, I could clearly handle myself, I still had terrible internet habits and an overreliance on it that a few environmental tweaks at a younger age would have helped with.