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Betting on F1 is one of the few sports you can actually win at. Bookies just look at figures, they do not understand the Sport.
Brawn/Mercedes may well come back with a winning car in 2011, offering Schumacher at 16 to 1 is an excellent investment IMO, the chances of Mercedes doing it and MS beating Rosberg in a car more suited deserves a far shorter odds than 16 to 1.
Likewise, Hamilton at 4 to 1 has to be good, many have tipped the McLaren to fly, again their superior KERS technology may make a difference.