Looking To Replace 18-55mm VR Kit Lens

This is my dilemma: I think I am leaning slightly toward the 16-85 - mostly because I do a lot of landscape photography and would like a better zoom with greater wide angle and telephoto abilities than my kit lens.  However, what appeals to me about the 35mm/f1.8 is that I could still keep my kit lens and also have what I think would be a great portrait lens (which I am starting to do more of).  I am conflicted, however, because I might be giving up having a better landscape tool if I went for the 35mm/f1.8!

O course I don't really expect any of you to solve my delemma for me, but it would be helpful if you have any information to answer:

1.  Is the 16-85 that much better a lens that the kit lens (i.e., resolution, IQ, chromatic abberation, etc.)?

2.  Tell me more about the 35mm/f1.8 lens.  What would I be gaining by having this lens, that I could not do with the 16-85?