...he said that canon camera bodies are 8-bit color and there are new 16-bit models of other cameras that increase the dynamic range of color.
Just keep in mind that sounds can come from more than one human orifice, or put another way, he was talking out of his a$$.
As rs states, Canon and Nikon both use 14-bit analog-to-digital converters (although some Nikon cameras allow you to save only 12-bit data to save space). 'Color' in Bayer sensors like those in Canon and Nikon dSLRs is provided by the color mask; each pixel sits under a Red, Green, or Blue filter, but the pixels themselves are monochromatic. A 14-bit ADC means the data contain 214
possible values for each pixel, with 'color' assigned based on the overlying filter. When the RAW file is demosaiced, the software interpolates the color data based on a cluster of pixels, so each pixel is assigned a color value that approximates the correct one (since each pixel really only saw R, G, or B).
Worth noting that no Canon or Nikon camera even uses all 14 bits of data; the maximum DR for Nikon (Sony, really) is just over 13-bits, and Canon tops out at under 12-bits. So those extra bits are basically wasted space in an image file.
I do have scientific cameras with 16-bit ADCs, but as rs also said, those don't exist in the consumer world.