Hi Bogdan,
Your understanding is correct. Unfortunately there is a hardware limitation on MIPI CSI IP and it can support only up to RAW14 image format. Regarding why that format appears on ISI chapter, from what I can see ISI can either have as input the MIPI CSI interface or fetching the data from memory. I suppose the RAW16 image format can be used for memory to memory operations (not sure of this, I don't think it's implemented in software, but I can check) however, regarding capture it isn't possible.
In fact, the same can go for ISP. The ISP actually does support RAW16, but it is not listed in 13.14.2.2.2 MIPI Inputs because MIPI-CSI does not support it and it's the only input.
Best regards,
Diana