
If handling is the goal, larger diameter is not better, for the reasons Bob cites.
My engineer/racer pals told me that the effect on the moment of inertia associated with increasing diameter by one inch is quadratic, meaning to the fourth power!
I am a functional retard when it comes to math, and have no idea what all that slide rule jockey gobbledygook means.

My takeaway was that the car has to work harder to accelerate a larger diameter tire. And that's bad.
For example, gear ratios are keyed to the intertial moment associated with the stock tire diameter. You might find fourth and fifth kinda weak by plus sizing diameter.
For these reasons, when selecting dimensions for custom CCW 3 piece race wheels for the FFR Daytona Coupe, we could have had 18" or even 19" wheels. The make 'em in those sizes, and we had plenty of height in the fenderwell, and it would have looked "cooler."
But because the whole idea of that car is to go fast very quickly, we went with 17s, for all the reasons Bob states (plus a larger selection of various R compounds).
Also when you get up to 19s, you might find choices in tires become more expensive. Just my two cents.