I've been looking at the same stuff lately. There are a few factors you don't have listed yet.
PSI - the 16 is a higher pressure tire
load rating - the 16 has a higher load rating
You'll have less flex in the 17 tire when fully aired up, cornering will be stiffer, less tire roll. However, the wheels for 17 tires tend to be 9 inch wide, so less tire bulge too, not bad, but you lose some of the look of big tires and the wheel is less protected by the sidewall of the tire.
Cost - the 16 is cheaper.
Since most 16 wheels are 8 inches wide, you get more tire bulge.
The 16 will should ride softer, but will have some roll to it. TPMS may light up unless you reprogram it for a low PSI. I ran 15's which are even softer and it took a bit of time getting used to it but the ride was nice.