Just my .2 cents from what I have seen. 1st off, I dont really count the mag's as part of the weapons system, and have seen many, many M16 mag related failures. Mainly because supply NCO's reissue fucked up mags, so I tell all my students if they have a bad mag to stomp that fucker flat, THEN turn it in to the supply NCO. I have never seen a AK related mag failure, but I'm sure they happen from time to time. So the advantage go's to the AK when it comes to mags.
2nd Brass vs steel ammo... The AK was made to shoot steel ammo, so of course it's going to be reliable feeding steel ammo. Brass 7.62x39 is rare, so if your a reloader your shit out of luck, and I have never heard of a target load for AK's.
The M16 was made to shoot brass ammo, it tends to have a tighter chamber so steel cased ammo might or might not work in your rifle. My Doublestar rifle eats whatever I feed it, but I have gotten away from the cheep 5.56 steel ammo mainly because the accuracy sucks. As everyone knows there is a shit ton of target load's for the M16, and it shoots a whole slew of different grain weights and you cant tune your rifle into a serious tack driver.
Advantage M16 platform
*** As far as Issue steel ammo in 5.56, I dont think its ever been issued in a steel case, at least not in the last 40 years or more.
Weapon platform/design... The AK is a simple, low maintenance rifle, but it tends to be a lot less accurate then the M16. Also I think the AR has serious advantages, when it comes to weapons manipulation... The mag release, mag change, safety/fire switch, bolt hold open, and IMHO the charging handle, esp. if you run a BCM gunfighter.
As far as malfunctions, I've seen crazy stuff happen w/ the M16 platform, but then again, I spent 4 years doing nothing but running Army ranges full time, and 3 years doing it in the Army reserve. This is the worst malfunction I have ever seen, and I very much doubt I'll ever see it again...
A bolt over-ride, with a double feed.
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