Is there really benefit going with one or the other? Other than my Jeep being an inch taller w/ 17s.

 

17's will not make your Jeep an inch higher than 16's alone. You would have to also increase the size of the tires. You could get a specific tire size such as 33" with a 15, 16, or 17 inch wheel.

 

Tires for 16" rims are cheaper. Height depends on tire height, not rim size.

 

That is what I was trying to say.

 

Makes sense. So other than tires being cheaper, nothing?

 

The size of the rim also affects the amount of sidewall you have (if you assume the size tire). A 35" tire on a 17" rim has less sidewall than it would on a 16" rim. It's not a huge difference, but a difference nonetheless. Less sidewall means less opportunity to gouge or puncture your tire on rocks or other debris in tight spaces. Or so I've heard.

 

Less sidewall means MORE chances for offroad damage to your rims. I don't think you want to protect your tires....... However, onroad driving on a larger rim is generally more predictable with less sidewall "play".

 

Larger wheels will generally handle better on the road, do to less sidewall from the tire and more stability, this is why you see performance cars with large wheels and low profile tires. Offroad, more tire/sidewall is desirable, especially for airing down and rockcrawling where more tire will benefit traction. THis is why it is common to see people who wheel their Jeeps hard to go down a size in wheels when going to larger, more aggressive tires. It's all relative though, if you're going really big with the tires then you'll see more 17's, etc.

 

I would rather damage a wheel than a tire. The tires are more expensive (not that this is actually a valid arguement for a larger wheel diameter).

 

Not my wheels, but then again, beadlocks aren't cheap, but most wheels probably fall into that catagory.

As far as 16's or 17's go, pick what you want, a 1/2" difference in side wall height is not going to make a significant difference to you.