I have 16x8 wheels with 225 50 16 tires and the car handles great with the lower aspect ratio compared to stock. You will also have less unsprung weight with a 16x8 wheel than a 17x8 wheel. Also 16" tires are less expensive than 17". If you want to keep stock outside wheel diameter, then you're better off going with 17" rims and the correct tires. Brake size will also dictate what rims you will need to use. You can still get some very good tires in 16" size! I'm running Firestone Firehawk SZ50.
88 LX Hatchback (100K Miles), Stock Engine, B&M Shifter, SFC, ST Brace, G-Load Brace, Eibach Pro Kit, Tokico Illumina Adj, MM LCA, FRPP UCA, FRPP FCA, Mac EL Headers, Dynomax Super Turbos, Mark VII front disc, TC rear disc, ROH ZR6 16x8, Fuzion ZRi 225/50R16, Corbeau Forza DS