UTF-8 didn't win on technical merits, it won becausw it was mostly backwards compatible with all American software that previously used ASCII only.
When you leave the anglosphere you'll find that some languages still default to other encodings due to how large utf-8 ends up for them (Chinese and Japanese, to name two).
UTF-8 and UTF-16 take the same number of characters to encode a non-BMP character or a character in the range U+0080-U+07FF (which includes most of the Latin supplements, Greek, Cyrillic, Arabic, Hebrew, Aramaic, Syriac, and Thaana). For ASCII characters--which includes most whitespace and punctuation--UTF-8 takes half as much space as UTF-16, while characters in the range U+0800-U+FFFF, UTF-8 takes 50% more space than UTF-16. Thus, for most European languages, and even Arabic (which ain't European), UTF-8 is going to be more compact than UTF-16.
The Asian languages (CJK-based languages, Indic languages, and South-East Asian, largely) are the ones that are more compact in UTF-16 than UTF-8, but if you embed those languages in a context likely to have significant ASCII content--such as an HTML file--well, it turns out the UTF-8 still wins out!
> When you leave the anglosphere you'll find that some languages still default to other encodings due to how large utf-8 ends up for them (Chinese and Japanese, to name two).
You'll notice that the encodings that are used are not UTF-16 either. Also, my understanding is that China generally defaults to UTF-8 nowadays despite a government mandate to use GB18030 instead, so it's largely Japan that is the last redoubt of the anti-Unicode club.
UTF-32 would be a fair comparison, but it is 4 bytes per character and I don't know what, if anything, uses it.
Spanish has generally at most one accented vowel (á, ó, ü, é, ...) per word, and generally at most one ñ per word. German rarely has more than two umlauts per word, and almost never more than one ß.
UTF-16 is a wild pessimization for European languages, and UTF-8 is only slightly wasteful in Asian languages.
And unlike the short-sighted authors of the first version of Unicode, who thought the whole world's writing systems could fit in just 65,536 distinct values, the authors of UTF-8 made it possible to encode up to 2 billion distinct values in the original design.
EDIT: Heh. The U+1F4A9 emoji that I included in my comment was stripped out. For those who don't recognize that codepoint by hand (can't "see" the Matrix just from its code yet?), that emoji's official name is U+1F4A9 PILE OF POO.
It is 33% more compact for most (but not all) CJK characters, but that's not the case for all non-English characters. However, one important thing to remember is that most computer-based documents contain large amounts of ASCII text purely because the formats themselves use English text and ASCII punctuation. I suspect that most UTF-8 files with CJK contents are much smaller than UTF-16 files, but I'd be interested in an actual analysis from different file formats.
The size argument (along with a lot of understandable contention around UniHan) is one of the reasons why UTF-8 adoption was slower in Japan and Shift-JIS is not completely dead (though mainly for esoteric historical reasons like the 漢検 test rather than active or intentional usage) but this is quite old history at this point. UTF-8 now makes up 99% of web pages.
You could argue that because it will be compressed (and UTF-16 wastes a whole NUL byte for all ASCII) that the total file-size for the compressed version would be better (precisely because there are so many wasted bytes) but there are plenty of examples where files aren't compressed and most systems don't have compressed memory so you will pay the cost somewhere.
But in the interest of transparency, a very crude test of the same ePUB yields a 10% smaller file with UTF-16. I think a 10% size penalty (in a very favourable scenario for UTF-16) in exchange for all of the benefits of UTF-8 is more than an acceptable tradeoff, and the incredibly wide proliferation of UTF-8 implies most people seem to agree.
Both UTF-8 and UTF-16 have negatives but I don't think UTF-16 comes out ahead.
1. Invalid bytes. Some bytes cannot appear in an UTF-8 string at all. There are two ranges of these.
2. Conditionally invalid continuation bytes. In some states you read a continuation byte and extract the data, but in some other cases the valid range of the first continuation byte is further restricted.
3. Surrogates. They cannot appear in a valid UTF-8 string, so if they do, this is an error and you need to mark it so. Or maybe process them as in CESU but this means to make sure they a correctly paired. Or maybe process them as in WTF-8, read and let go.
4. Form issues: an incomplete sequence or a continuation byte without a starting byte.
It is much more complicated than UTF-16. UTF-16 only has surrogates that are pretty straightforward.