I grew up just outside NYC (10-15 minutes) and...it was not particularly popular at school/neighborhood.
Yes, there always a "retail presence" in all the malls (EB Electronics Boutique), ToysRUs, and some local shops...but I never saw or met anyone who was actually looking at TG-16 stuff, let alone buying something.
I only knew a handful of folks growing up who had TG-16.... I was the only one who had TG-CD.
None of the local rental stores carried TG-16.
My two brothers and I, collectively, knew hundreds of classmates/neighbors/family/etc.
Over the years that number grew...
...only 5-6 TG-16 out of ALL THOSE FOLKS.
Ok, maybe it was a bit higher...but not by much.