I mean you're both right actually. They didn't make more 16 GB PBs because there was more value to the customers in providing 32GB and 64GB versions. However, they did technically sell out because there are no longer any 16GB PlayBooks just chillen at RIM waiting for something.
Kudos to both.
I think RIM should hire a public relations guy to handle the media. Some one who can be in touch 24/7 with journos and keep feeding them news and make sure they add a little positive tone to what ever they write. Hate to say this, but spend some money on media if required.