That switch from ARC probably would work but it is not just a case of saying 16A is enough. The 16A rating is for resistive loads. A motor is an inductive load, which gives a surge voltage when turning off. This means that switches for inductive loads have to open fast and wide to quench the spark as quick as possible.
If you look at ratings for switches they have different ratings depending on the load See this The single phase AC23A rating is probably the most applicable.
For example, my personal favourite the CA10, it is a 20A switch. For resistive loads the max single phase load of 4.6KW but for AC23A rating (Frequent switching of motors or other high inductive loads) the max single phase load is 2.5KW.
As a rule of thumb assuming the switch has an AC23A rating, de-rate by 50%. So 16A * 230V * 0.5 = 1.8KW
As Bayzle said, a mandrel handle is the real answer to easy threading, easy to make too. Motor Fwd/Rev is great, but it is the stopping at the right place is the difficult bit. All too easy to crash the tool into a shoulder.
I think there was a MEW article about restoring a Dewhurst switch, involved replacing the dewhurst with a modern one. Also there is this thread that tells you what to buy and how to wire it **LINK**
Adrian
You also have to remember about your chuck unscrewing with motor reverse.
Adrian