17" wheels will work. You aren't actually changing the total wheel diameter. You'd use a tire with a thinner sidewall to compensate--something like a 215/40R17
That said, the bigger the wheels, the more unacceptable the lack of lowering looks, IMO.
The OE springs "fit" in terms of diameter, but the drop up front will not be that large, because the M42 is a lighter weight engine than an M20. You may end up having a jacked up front end.
You may even want to consider supplemental oxygen due to the extreme front end altitude. jk