Remember, the Prius V/Five comes with unique suspension (different shocks, springs, and alignment) that is not present in lower trim Prius...along with the 17" rims. (Of course, not directly related, but V/Five also comes with sportier steering which contribute to the overall improved ride/handling feel.) Whether all that add up to a better or worst ride depends on your butt and what you have been used to. But, i do like my Prius V/Five ride quite a bit!
Do you have to get new TPMS for the 17 or 18" wheels?? I have a 2011 Toyota Prius III with the 15" Stock and Yokohama Avid S33.
It seems strange that in the UK the GEN2 only came with 16inch rims on all models the GEN3 with 15 and 17inch. I would have thought that 16inch would be a good compromise between ride handling and economy.