after long time, based on a discussion with another user, I tried to use point clouds in MicroStation CE Update 16.1. And it is disaster, especially in a context that one from "the release theme" is performance optimization.
When even simple POD file with just a few millions of points is attached, MicroStation response randomly (especially when element selection is used or a view should be rotated) drops down, for a few seconds MicroStation does nothing, GUI is redrawn and blinking. So, U16.1 is not usable for any project, where point clouds are used.
I have no original Update 16 installed, but when I tried Update 14 on my notebook (which is 10x slower, because only old mobile Nvidia card is used), it's not perfect, but acceptable, and without halted MicroStation moments.
I tried to search for similar issue, and I found only this discussion, and I also received information that (probably) bug #672552 is logged for this issue.
Can somebody from Bentley confirms it is known problem and for what release the fix is scheduled? It's important to warn users, using point clouds, to do not update from U14 or U15.