Hi,
an ideal RAID group size was 16 (14+2) disks (is this right?)
Not really - it is more important to have RGs of the same (or similar) size, but it could be anything in the supported range.
there is no space in the shelves for spares. Presume these could be internal?
Spares could be anywhere as long as there are assigned to the right controller (they are not system-wide, just controller-wide, so you need spares on both heads)
do people reserve disks for system volume on each controller?
It can be debated, but generally on smaller systems it doesn't make sense - root volume sits together in the same aggregate with user data.
Regards,
Radek