Aside from the raw effects of wheel weight and wheel diameter in terms of rotational mass / inertia, the effective gearing is also changed. Making the wheels larger has the same gearing effect as changing your LSD's ratio in the bad direction (closer to 1:1), whereas making them smaller moves the ratio back in the good direction (closer to larger_number:1).
I went from the stock 19's to a lighter (but wider) set of 18's and the difference was very noticeable.
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