DieselHybrid,
Your points are valid, and I actually had an indy tire as a coffee table at one point so I am aware of their dimensions (those suckers are heavier than they look). The point I was trying to make is that there is no absolute "small good/big bad" or vice versa - it is relative to the original configuration.
I find it hard to believe that car manufacturers continue to go to bigger and bigger wheels, particularly on high-performance cars, if smaller wheels was a simple solution. Porsche certainly knows more about this than you or I, and they don't use 15" wheels.
The "stock" setup of cars is designed by the manufacturer to achieve a certain balance of performance and ride.
Aftermarket parts, including changing the tire size can alter that balance.
Factors such as
wheel and tire manufacture/material, sidewall stiffness, tire pressure, temperature and, as you stated, most importantly the driver, have more weight overall than simple math regarding tire profile.
A 235mm wide tire on a 17"
wheel *may* have a bigger contact patch, based on sidewall stiffness and tire pressure, it may not. Compound and tread design will tell whether that bigger patch does any goes, either sideways or straight ahead.
Lastly, whether it be engineering or market forces, try finding a 285mm wide 17" tire.
I agree fully that anyone throwing 45lb 20" wheels with budget tires on their car, hoping for performance improvements, is wasting their time, but carefully selecting high-quality components to match your desired vehicle performance is one way to personalize your vehicle.
Let's agree that "bling" is different than substance, but I won't be putting skinny 16" tires on my baby anytime soon.