For the vast majority of consumers, its generally correct for a variety of reasons. In comparing 16 bit to 24 bit recording depth, people can hear dynamics beyond a the 16 bit level, only a limited number of playback devices are capable of resolving that data in analog performance. The iPhone 6 was Apple's first device that had enough performance from its headphone output to resolve 17-18 bits worth of data. All prior models really couldn't do more than 16 bit, if not slightly less.
The absolute top DAC devices on the market achieve at best 21 bits when measures 20Hz-20Khz. Even then, very few amps and speakers combos are capable of handling more than 18 bits of dynamic data while keeping distortion in check. Some of the most powerful home speakers ever built have no more than 118db, just below 20 bits of dynamic range. As for sampling rates above 48Hkz, its primary benefit is moving the roll off filters outside the audio band. Poorly implemented filters will affect phase response and have some audible effects in parts of the audible range. Modern filters have improved significantly in performance and up-sampling is no longer as necessary for good audio quality.
Engineers will often use regular home gear to listen to a finished product. You have to ensure that the majority of the target audience can playback the recording with no issue, and this means mastering the output to fit within the performance range of their playback device. Something that 16/44 does for the overwhelming majority of people. As for the audiophile group who actually own equipment that perform beyond the norm? Its far too small of a group of people to take the cost of mastering above 16 bit to be worthwhile. Recording at 24 bit does exactly as one had mentioned, provide more dynamic range to deal with issues later in the mastering.
Many consider vinyl recordings to sound better than their CD counterparts. Quite often, they are correct. The digital copy is mastered for the car or headphones, while the vinyl edition is mastered for a turntable paired to a complete stereo. Engineers understand and adapt their mastering process accordingly.