I respectfully disagree that the M203 attached to the M-16 is a bad idea. In fact, I think that it only needs a little improvement namely removal of the M-16. Reading historical criticism and praise for the M-16 it was said that one of the distinct advantages of this weapon was the ability to use the barrel/flash supressor as a grenade launcher. I think a grenade launcher is an integral part of the modern infantry squad.
I do REALLY like the idea of air-burst grenades. They should, however, not be included in a weapon system that has more gadgets on it than the space shuttle. I think that a 10-12 pound stand-alone weapon would be a benefit in modern combat.
I'll explain the air-burst concept. The grenadier selects a target and 'pickles' it with a laser rangefinder. He then programs the grenade to explode just beyond the object... say it's the rim of a bomb-crater. Set the fuse to detonate the grenade 6 feet beyond the rim. Once fired, the fuse counts the revolutions and calculates the exact moment of detonation. Nowhere to hide, as the advertisements say.
Only hardened bunkers are protection from grenades. Doorways, walls, ditches, foxholes, etc are not sufficient. You simply pick your target, turn a wheel a little, and pull the trigger.
The electronics are simple and straightforward if a bit expensive. I question the need for a backup weapon duct taped to the bottom of the launcher, but why build a $2000 weapon when you can build a $20,000 is the logic.