I want to replace OEM head unit on my 2016 Honda Jazz with Sony XAV-AX100. And I'm wondering is it worth the hassle? Would it be possible to make it work with OEM rear view backup camera?
The other thought is to wait until Honda makes OEM Android Auto HU and upgrade to it. What do you think?

 

In the US, the backup camera is tied into the CANBUS unit; I don't know if your version is the same configuration. As it stands, there's no way I know to make an aftermarket head unit work with it. I know some folks here were working on a CANBUS hack but don't know if they've gotten anywhere. Same for the LaneWatch if you have it, you'll lose that too if you go aftermarket.

Another issue if you install an aftermarket head unit is that you lose the ability to change the clock which resides in the dash gauge where the mileage display is. Might not be a big issue for you but could be an issue if you ever decide to sell the car.

I have a '16 LX/CVT which replaced an '08 Sport which was totaled last year by a red light runner at high speed. When I got my '08 Sport, there was no option for a factory navi unit (at least in the US), so I replaced my head unit with a Pioneer AVIC U310BT and loved it. The head unit on the '08 was fairly minimal so there wasn't much hesitation to upgrade. Now, with the backup camera being tied to the head unit in the '16, it's a tougher decision.

I'm in somewhat the same boat as you - would love a better head unit but functionality changes with aftermarket and not necessarily for the better (loss of backup camera & clock control).