I recently bought a 16-85. I researched quite a few lenses before I decided on this one, I briefly thought about the 17-55, but because of the price, lack of VR, and less zoom range, I ruled it out pretty quickly.
I also considered offerings from Sigma and Tamron, I was very tempted by their lenses, the prices were right, VR was available, as was f2.8.
But in the end I went with the 16-85 Nikon, there were just too many good user reviews out there for this lens.
I am happy with my decision, for me the VR makes up for the smaller aperture, and the range covers my needs for a walkaround lens.
But your mileage may vary.