I haven't used both - I had a 16-45mm, and now have a 18-135mm.
I find I do miss the F4 of the 16-45 (which would be similar to the 17-70, especially inside - 5.6 slows down really quick), I really like the smaller size (filter diameter) of the 18-135mm. The weather sealing is a bonus and a definite consideration if you are using your kit outside in weather.
I imagine the focus speed of the 18-135mm to be a lot quicker than the SDM of the 17-70mm, but I don't know for sure.
In terms of image quality, I am happy with the colour, and mostly happy with the contrast. Sharpness is OK, and very good when stopped down. It is a "centre-centric" lens. It's no prime, but it is a very useful companion, and if you are out in the rain it is sealed and has a useful range.
Edit - If you are a wide shooter, stick with your 17mm - I miss the difference that a 16mm wide end gives. I find the 18mm quite constrictive at times.
Last edited by Clarkey; 07-27-2011 at 06:26 PM.
Reason: inside/outside switch