Kegs - I checked my tyre diameter claculator and you're right you can get a similar rolling diameter in a 17" rim. You would need to keep the aspect ratio to 30 or 35 and the tyre width would have to stay under 225. Big dollars to make your car handle worse!
Just to expand on Datsik's point about road and race suspension. Race tracks are usually (not always) smoother than public roads so road cars generally have more suspension travel and in addition use the tyre sidewall as a buffer too. Race cars generally use tyres with stiffer sidewalls to prevent tyre squirm. They don't need as much suspension travel and cushioning due to the smoother surface that they are driving on.
Quinn - It's my left thumb that I recently cut on a V slicer. I'll change it soon as there have been complaints of nightmares from a couple of the site's regulars.