Yes it is limited to 16 bits but as far as I have ever encountered that is the same limitation imposed from all video editors I have come across. Whether that has anything to limits being imposed in the actual codecs used within a video file or not I could not tell you. That still gives you 96dbm of audio gain, so if you cranked the volume up to the point it was physically painful to listen to then when the parts where no sound is recorded, you would begin to hear the hiss produced at random by the electrons flowing through the pre-amplification stage of most DVD Blu-ray players producing white noise.
The clarity or accuracy of a digital signal on the other hand is dependant on the sampling rate which has historically been set to 48kHz for video although for those wanting a cleaner sound can now export at higher sampling rates depending on the video editor and how it is to be played back on what equipment.
Sorry I have had to amend my views after doing some additional research.
Apparently this is possible with quite a few other video editors including the Magix Pro Vegas range but not in Magix Movie Studio or Video Pro X but is available in the Vegas range of software.
You may have to disable a lot of compatibility options in some of the video editors to gain access to those options.
That screen shot is taken from Vegas Pro. It could be another way that the controlling company is making each program offered in their line up of products different to appeal to different users depending on their needs.
However be aware that playback options for such files may be limited to just playing back on a PC if embedded into a video file. YouTube for instance will re-encode the file upon upload including the audio.