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I have been using the 16-85 as my primary 'walk around' and landscape lens. It covers good focal range and is very sharp from 16-50mm. Stopping down to f5.6-f8 further improves the sharpness. Most of my landscape images are shot at f11 on a D300 or f8-f11 on a D5100. Resolution wise, the 16-85 holds its own against the 16-35 on the D7000 (photozone.de).
Biggest downsides, relatively slow wide open aperture f3.5-f5.6. Also, the sharpness drops from 50mm-85mm. It is noticeably softer out from 70mm. Also, the bokeh is pretty average at best but isn't bad at 85mm.