Atmel ATmega16l8 as arduino

With more -v's, you get additional debugging showing that the programming IS responding:

         Programmer Type : STK500
         Description     : Atmel STK500 Version 1.x firmware
avrdude: Send: A [41] . [80]   [20]
avrdude: Recv: . [14]
avrdude: Recv: . [02]
avrdude: Recv: . [10]
avrdude: Send: A [41] . [81]   [20]
avrdude: Recv: . [14]
avrdude: Recv: . [01]
avrdude: Recv: . [10]
avrdude: Send: A [41] . [82]   [20]
avrdude: Recv: . [14]
avrdude: Recv: . [12]
avrdude: Recv: . [10]
avrdude: Send: A [41] . [98]   [20]
avrdude: Recv: . [14]
avrdude: Recv: . [00]
avrdude: Recv: . [10]
         Hardware Version: 2
         Firmware Version: 1.18
         Topcard         : Unknown
avrdude: Send: A [41] . [84]   [20]
avrdude: Recv: . [14]
avrdude: Recv: . [00]
avrdude: Recv: . [10]
avrdude: Send: A [41] . [85]   [20]
avrdude: Recv: . [14]
avrdude: Recv: . [00]
avrdude: Recv: . [10]
avrdude: Send: A [41] . [86]   [20]
avrdude: Recv: . [14]
avrdude: Recv: . [00]
avrdude: Recv: . [10]