Absolutely you should. In fact, you must upgrade to Joomla 1.7. Joomla 1.6 will reach the end of its life in August 2011, just a month away. After that, Joomla 1.6 will have no further security updates, meaning that if a security problem is discovered, it will not be addressed. And that means if your site is hacked due to a 1.6 vulnerability, you will have no recourse to fix the site, other than to move it to 1.7 anyway. You might as well move it sooner than later!
Oh, and upgrading from 1.6 to 1.7 is designed to be a very simple, one-click process.
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