I have never seen a case separation in an M16 as well. And that's after 100,000's of rounds.
However, i still carry a ruptured cartridge case extractor for the 5.56 (available from Brownells, their P/N: 800-741-0015) because I have experienced several dozen with the m60 machine Gun (7.62mm NATO). And safely removing the separated case neck and shoulder from inside the M60 barrel chamber without scratching or damaging the chamber is difficult without the 7.62mm GI rubtured case extractor.
So I never want to go there with a smaller 5.56 chamber, especially when the barrel is not as easy to remove from the receiver as is the M60's.
By the way, these M60 problems usually involved only the tracer ammo loaded in the belts at 1 to 4 Ball rounds. The tracers were headstamped for manufacture in 1962, but the ball rounds were stamped 1974. So this is an indication that brass can give it up with age. So as our rat-holed ammo ages in their waterproof boxes buried in the back yard, think about some inventory rotation.