"It is understood that all 16 channels cannot be driven at their max. "
Untrue.
Someone stated that it's 120mA per output, allowable. It's not.
The power dissipation is one thing and the max current for the device is another. 1a) Don't exceed the max power dissipation, 1b) don't allow the combined output currents to exceed 120mA. Anyone can argue till he's blue in the face, or Red-Green-Blue in the face, I don't care.
"BTW....since dot correction was not stated as being used, DCn=0."
No way! Does nixing pixel correction imply 0, does the datasheet state that? If that was so, as you noted, then you could do whatever you wanted because everything there gets multiplied by "0/63=0" and everything would then be "0", a free play, and that would make zero sense.
You guys have all the answers, see it your way, have fun: I am not the guy with the burned up ICs.