Datman, the LP mode slows down the linear travel of the tape, and makes dropouts in playback quite a bit more likely to reach audible proportions. The one time I made a recording of music in the LP mode of my TCD-D7, it did have an uncorrectable drop-out at one point, with about 1/2 second of material being lost in the process.
Chances are, the same defect in the tape would have caused massive error correction or even error concealment if I'd recorded at the full tape speed, but the music probably wouldn't have been interrupted.
In terms of audio quality, I'd have no objection to a clean cutoff at 16 kHz, except in a professional situation where the recording might be issued as a commercial CD (those still exist, don't they?). But I don't remember for sure whether the LP mode of these recorders used 16-bit linear PCM at 32 kHz (which would be fine for most purposes), or a range-scaling system with fewer bits (which I'd want to test more carefully). You might check the manual to see about that.
--best regards