Another suggestion is to check out some of the Lionel Dealer Display Layouts from the 1950's. Should be able to find plans online. These were 4x8, 5x9, and 8x8 layouts that were specifically designed to showcase operating accessories, trackside signals, lights and structures. The nice thing is that they easily incorporate all of these items into smaller spaces without being too cluttered.
May not be exactly what you're looking for in an 8x16 but should give you some good hints.
