I agree with Denis and 450SE,
There's certainly no need to duck, Alabassi, as this is a pretty subjective issue. Your take on the modern appearance of the 126 cars is a good point.
Now, one of the reasons that the 126 cars fare better regarding rust is that they offer a LOT more aluminum than the 116. Alumimum is lighter and more rust-resistant, but can it do this?
http://www.mbspares.com.au/default.asp?d=18019&p=18013 (from MB350's offering in another post). This is an amazing testiment to the profoundly well-built MBz cars the 70's offered. A line from the book, "Mercedes-Benz: The First 100 Years," says, "I consider the w116 the best combination of active (accident avoiding) and passive (protection in a crash) safety yet designed for a production car" (pg 224). The author (Richard Langworth) further quotes Graham Robson as saying, "Everything known about safety engineering, and the 70 accumulated years of passenger car experience by Daimler and Benz, went into the S-class sedans. They were so quiet and refined, so roadworthy, so fast and - as experience proved - so very reliable that it was going to be difficult to make dramatic improvements when the time came to replace them" (pg 224). Rust aside, the bodies of these 116 cars are absolutely awesome. And no automotive engineer that I've read has said the M117 improved during the 80's... Cast iron = durable, baby!!! And then you find out that the zero offset suspension on the 450 SE/SEL is still with us today. That's really something.
Now, as to what 450SE said, yeah, our 116 cars are such marvelous bridges between the past and the present. I also agree with Alabassi, the 126s are beautiful cars. This difference reveals that there is a subjectivity here. But I see a profound continuity between the 126 and the 116. Don't you? That's why I can agree with both 450SE and Alabassi here.
As to what Denis said about German workers (in response to my earlier post above), I agree. WW2 was terrible, and what the Nazis did was downright evil. But one thing that war proved was that Germans knew how to build magnificent machines!!! It is amazing that a country smaller than several US states almost defeated the combined power arrayed against it. Boy could those Germans engineer and build good stuff! I think that pride continued for decades. But I wonder if it is continuing today, given what I am frequently hearing from owners of new Benzes???
In any event, I believe there's a good case to be made, in terms of appearance, safety, performance, and durability, that the w116 really may be the epitome of the 3-pointed star.