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I'd recommend staying 17x7 if you're concerned about weight. 16x7 would look too small on this car IMO. If it's going to be used almost entirely for street, daily driving, I don't think it would be a noticeable difference in handling if you went with a 17x8 with a slightly wider tire. You're not getting much of an aesthetic benefit (i.e. concavity) with an 8" wheel, aside from looking slightly beefier from behind.
Overall I'd suggest 17x7's with a proper offset or spacers with a nice set of tires.
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