lukesoon, let me relate my experience to you.
My car came with 205/55 R16, enjoyed 6 months for its comfyness and reaching 200kph without an issue. But once driving down from genting and almost lost the car during cornering, i immediately got a 18' with 225/40 profile.
First thing i said after slapping in the 18s, wow so big!! Nice! Had it for one year. Still on stock suspension. But suffer slightly weighty steering, can feel the stones on the road due to thin side walls, acceleration abit slower, and even reaching 195kph now take some time. This is due to larger tyre contact patch = more friction/resistance. BUT is also means HIGH cornering limits
...bcos i love corners, it didnt mind some ride quality or acceleration/top speed suffered (how often u hit top speed rite?)
But then one day i hit a bloody pothole with sharp 90 degree edge, even it wasn't very deep, it cracked the rim and blew my tyres. I was using goodyear gsd3 germany tyres, very good rubbers, and it tears my heart (bcos is also expensive
)
So i opt for 17" with 225/45 profile and been using it for almost a year. Ride has improved a bit, slightly better acceleration but top speed still the same as 18'. Cornering quite the same too.
BUT when i join last friday TT with the gangs, i saw so many lowered E46 and running 18' ..at least!! I was like damn ...shouldnt have gone for 17"!! The racun was so strong that now i'm contemplating to go back to 18'
So, i hope now it can help you decide