I get that there are several ways to mitigate costs, but my point is that the final cost per diaper is still not insignificant compared to the total cost of paper diapers.
This is true, especially if you factor the time. I'm on my third use of my cloth diapers, so that is certainly coloring my view of it. At this point, it's all gravy. Also, I might add that I wash my diapers with my regular laundry at this point. My hybrid system of cloth and disposable means that I oftentimes only have 2-3 diapers for a load. I rinse them separately in a small rinse cycle and then just wash them with my regular clothes (using original Tide). So, in my situation, I'm not really adding more than one rinse cycle to my regular laundry. I've never had a problem, but I might change my routine somewhat when my infant starts eating solids.
BTW, I have been getting disposable diapers at Target for 10 cents each. You could likely bring your 16 cents down even more if you combined Target Red card with sales and their subscribe and save feature. That, of course, assumes you like Target brand diapers.
I think a lot of parents (esp. moms) enjoy cloth diapers and think they are fun. Go to any website devoted to them and you will see this. Some people love the big bums they give kids, the fun patterns, etc. It's really a subculture, kind of like baby wearing, and an identity for people.
I am also of the opinion that anyone who lives in a drought ridden area or in a desert climate should probably be using disposables. This is the more green option.