The CR2016 battery being dead will not prevent the camera from powering on. My 40D is sitting on the desk as we speak with the battery removed and it powers on just fine. It does come up and ask me to set the date and time but functions normally. If I turn the camera off and back on it goes back to the date and time screen. This is the main function and maybe the only one that the CR2016 battery performs.
Actually, the same thing happens in computers when the button battery goes. It may not be dead, but it gets to such a low charge that the computer won't power on. (I've been repairing computers 20+ years and see this a lot). Since digital cameras are basically just a computer, the same thing can happen.
Removing the battery is not the same as having too low a charge which is why your camera will still power on.
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