Many vouch for it. I figure it would be good place to start with this system. (played handful of things so far) Gunhed is a good game for TG16... and a decent enough shmup. It has nice animation, speed, sound and eye candy for this system. You can also pause the game and enjoy color cycling sprites often times. However it is not perfect and close examination does reveal a minor flicker at times, while not very noticable. IT recycles bosses and has some managerial mechanics that are quirky. Overall it looks nice, sounds nice, and plays quick
Gunhed (mostly) conists of 4 weapon power ups that you can pick up and then must manage in the sense of not pickup a wrong/conflicting power up. I have played a few shooters that do this and I dont especially like the mechanic. I also found some to be more useful/powerful than the other weapons in general. Other bits include increasing speed and temp weapon boosts that seem to add to the management of how you go about your laser blazing. There is a good guide detailing the nuanced mechanics of the game. Initialyl difficulty isnt too bad once you get a grasp for basic management mechanics but its very hard by the end.

I liked the caravan version (Gunhed Taikai / Gunhed Tournament) much more and discovering that the game had one was the reason I picked it up. In Taikai, pick between 2 min or 5 minute time attack in a variation of area 3 which is overall a bit easier. I'm a little lacking in caravan shmups but it did indeed remind me of Alzadick with a more direct and dead simple approach (alzadick however was simply much more fun) These are great ones to try if you haven't tried caravan but like the genre.