Yes I tried and several others have too (not necessarily on this Forum)
I think Max Collogne runs 17" on his SFC rep.
I've run 18/18, 18r/17f and 17/17 on my triple road and track.
I've observed the following, choice of tyres gives handling improvement only by going from best of 18" to best of 17". Some improvement with turn in, also noticed with 18/17 as you might expect with the front tipped in.
You may have issues with a 160 rear fouling the swinging arm. There is no categoric quick answer, it is entirely dependant on the make, aspect ratio, rim width, wheel diameter..
Chain issues, as above.
You will probably have issues with getting it on and off the centre stand.
You might have issues with the side stand especially if you run the original design. You probably wont have issues with the side stand developed by Jim Bushman me , it'll just lean over more. LESS.edit thanks Cam
Gearing will be affected you may want 38 or 39 teeth to standardise it.
Depending on your riding style, you probably will touch down the full alternator cover on the road, especially with the earlier shorter forks.
It might look a bit odd, if its a standard style bike, certainly the front mudguard wont look right and if you change it, its might look odd with a lot of fork leg exposed and a small wheel. Forks dropped in the yokes or and extended front steering stem, offsets that issue.
Arse end may look funny with a big mudguard.
Big difference with inertia, the bike was much easier to flick with smaller overall diameter , which is more than 1" when you've adapted to a smaller aspect ratio too !!
I changed back last year between 17" to 18" and back again and yes there was a definate improvement but it was better on 18" than I remembered. That was switching between Pirelli supercorsa Pro and in 18" BT016 rear and Avon Storm front !