I do have the DA* 16-50 that belongs to the early batches and serial numbers which I can confirm did have problems (not only SDM but slight decentering issue); I bought it used from another user while it was still under warranty. The lens was repaired and has been working since then; I don't think that we heard any more reports of SDM failures in the last while. We can only assume the risk of having SDM failed problem is less with the new batch that you can buy in reputable stores.
Like many others, I like my DA* 16-50 especially for my event/stage photography but I am also tempted to get the DA20-40 for travelling purposes as it is lighter (hopefully my next trip to Japan). I also don't like to use the wide end that much (mostly between 20-40) as my photos usually involves people. I find the 16mm on the wide-end to be little more distortion for my comfort; however, for wide open space in mountains/oceans scenes then they are perfect.
---------- Post added 11-17-2014 at 03:51 PM ----------
"Q: Why is the DC technology found in the DA 18-135mm so realiable?
A: The DC motor found in the lens is based on the motors used for screwdrive autofocus in Pentax camera bodies, although it's obviously been modified to be quieter and to fit inside the lens."
As an analogy, the DC technology is like mounting a motor on conventional bicycle to make it look like a motorcycle? Not a bad idea, at least it saves fuel.