Compare a $10k used car to $10k electric car: The cost of a decent LiFePO4 battery pack is $6k
That seems like a problem in your argument. There is no electric car+battery combination which costs $16k. The figure you cite is less than half the actual retail cost of an electric car+battery. Even the prius plug-in, due next year, costs over $30k, and the battery pack only provides a 10 mile range.
The cost of electricity to recharge the pack is ~$0.10
Retail electricity for residential consumers in states which don't burn coal is about $0.14/KwH, not $0.10. If we burn coal to generate electricity, then we've negated any environmental benefit of electric cars, so we should use the $0.14/KwH price for electricity. Electricity from renewables would be at least 50% more expensive than even that.
Let's try a comparison with these figures. The Nissan Leaf costs $35,000, and an approximately equivalent Nissan Versa Hatchback costs $15,000. If we drive the versa for 150,000 miles with $4/gal fuel at 35 mpg, we pay $17,142 for fuel. If we drive the Leaf for 150,000 mi (which is the rated life of the battery pack), the fuel (electricity) would cost $8,400 (leaf has a 24 KwH battery pack which costs $3.36 to recharge at $0.14/KwH and takes us 60 mi on average, for a per-mile charge of $0.056, *100,000 = $8,400).
We must also include the cost of financing. Interest at 3% above inflation for 5 years would cost $2250 for the Versa and $5250 for the Leaf. Even if you pay using cash upfront, you are foregoing interest you could have earned by investing the same money, so it's an opportunity cost.
There will also be different insurance costs, for insuring a $15,000 car against theft vs. a $35,000 car. But let's ignore that now.
Of course the government will give you a $7,500 tax break right now if you buy an electric car, but will only do so for a small number of buyers until the incentive expires, so let's ignore that now because it's not generalizable.
The total cost of the Versa for 150k mi is $34,392, and the total cost of the Leaf for the same distance is $48,650. It costs about 41% more to drive a similar electric car at present, not counting insurance or limited-time government incentives. It is not cost-competitive.
It's possible that an electric car will become competitive if gasoline costs far more in the future and batteries cost less. If the Leaf costs $30k in the future and gasoline costs $7/gal (in 2011 dollars), then the Leaf would be approximately cost-competitive with a gasoline-powered car. This circumstance is definitely possible within the next 15 years.