I'm a bit confused on the above as I purchased the TM16 for it's highest output... So far, when in use, the TM16 has shown that it doesn't have step-down issues.
What am I missing?
Nothing, I'm sure! If your light does not step down, then I, too, would use its top output level when I described it.
My way of thinking about flashlight ratings does not change any flashlight. It only changes the way I perceive them. The example I gave was the Zebralight SC62w. Most owners will proudly tell their friends that they have a 930-lumen pocket monster. I tell mine it's an impressive 560-lumen light that can pop 930 lm for a minute or two.
If I need 930 lumens for anything more than a minute, I will go to something else. Remember, the SC62w begins dropping down from 930 lumens immediately upon activation. It does not give you even 60 seconds on max. After 5 minutes of constant reduction, it is down to 60% of max, around 560 lm.
Although I don't have many lights, I have a Nitecore P36 that I can use when I need 930 lumens. On 3400 mAh batteries, it can pump that out steadily for more than 2.5 hours. The manufacturer of the P36 brags that it is a "2000-lumen" torch. In
Selfbuilt's testing, however, the P36 dropped into an immediate direct-drive decline when operated on max. It did not give a flat 2000 lumens for even 60 seconds. I find that it is useful to think of the P36 as an "1100-1200 lumen" light that can pop 2000 lumens for a minute or two when necessary.
Of course, this is all psychological. The lights have not changed at all. I feel, however, that my expectations of what a light can do are more accurate when I think about them in this way.