So in the context of 16k tokens, what the real capabilities are here is being able to continuously send more context through the chat with each subsequent query.
Think of it more like the memory has improved rather than the output has increased. So when before you sent 6 messages or so depending on the length. ChatGPT would begin to forget the context of the conversation from chat message #1, like if you gave it certain instructions at the beginning. It wouldn’t follow them anymore the further on you went into the conversation. This was because of the token limit. Each time you send a new query, it sends the previous chat history for context to develop it’s next answer.
And with the limit in place it is only going to send the last X amount of words that would fit with the token. So with the increased token length, you are able to have longer conversations with an improved memory. Rather than thinking about it as being able to provide more length. It is true that it can provide more length, but you will have to continually seed it for more of what you want, and as the token increased, it will be able to create more coherent longer conversations.