Thanks!
A few minutes ago I went to see both lenses at my local big box retailer. Comparing borh lenses (the 17-40 and the 16-35) my impression was that the 17-40 felt better built; more solid like what I expect an L lens to feel like.
However, after much internal deliberation I ended up getting the 16-35 for one reason only: IS.
Had the 16-35 not had IS, I would have purchased the 17-40 hands down. Even the sales person was telling me how much more she liked the 17-40.
Hopefully I didn't make a $1000 mistake...

ohhh noooo you made a big big ...............
Fantastic decision!!! 
The 17-40L is a great lens for one of Canon's UWA lenses. The 16-35L f/4IS has more micro contrast/sharpness and the colours are incredible just like the 17-40L.
I typically shoot events with my 16-35f/2.8 mk2 but I did something risky..... I used it in an extemely low light restaurant to document an epic 40th Bday celebration. I used bounced flash but I also used the 16-35f/4is lens with no flash in certain situations. The "IS" was incredible and I achieved photos I wanted!! Lights out with candle light only worked out fantastic.
I was very pleased with the 17-40L i owned. I purchased the 16-35L f/2.8 mk2 because I started to shoot alot of events and wanted faster glass. I purchased the f/4IS version simply because I liked the IQ. I like the image quality of the f/4IS version over the f/2.8. However when I need more shutter speed and need 1 stop faster glass I'm still very pleased with the IQ I get with the f/2.8 mk2 version.

