It's a trade-off, ride quality and acceleration (16") vs handling and braking* (17"). Cost comes into it too sometimes. Looks are down to personal preference.
The improvements to handling and braking of 17s will be negligible in normal (depending on your definition of 'normal') street use but you'll notice a rougher ride on 17s, particularly with coilovers.
TBH although mine feels much more skittish on bumps it's not, I think you get more pronounced feedback from the hard suspension and low-profile tyres.
* not too sure on this, obviously big brake kits that need 17s to fit inside are better but I'm also thinking bigger wheels = more air to cool any brakes.