It seems like outside of being the “new thing” and having the A19 chip, the 16 is a better phone. Wondering if the efficiency gains and performance of the newer chipset will pay dividends in a couple years?
If battery life and storage are a top priority for you, the 17e will serve you well. But if a little less battery life isn't a big deal to you, and 128gb is still plenty of storage, then the 16 will likely be more bang for your buck and should be supported by Apple just about as long as the 17e. The 16 will give you:
Better / more versatile camera (including better low light and videos with sensor-shift stabilization)
A little higher quality screen (likely not noticeable unless side by side)
Dynamic Island (some don't consider this a benefit, though)
U1 chip for precise location finding (AirTags for example)
The 17e will give you a slightly newer chip, better battery life, and more storage at the base level. It's also a nice simple/clean form factor that sits flat on a table with the right case (if that matters to you). The camera will be solid, just less versatile and not as good in certain scenarios.
For only a $50 difference in cost, I think it just comes down to what's most important to you among those differences.