Holy shit! I think I got X5 wheels!?? :)
To give you all a few more facts to base your responses from, the wheels and tires were off of my brother's 98 Z3 who went for 18"s.
These Z3 wheels are staggered 17X8" and 17X81/2" with these tires: Front Continental ContiSportContact 225/45R17, Rear Toyo Proxes-T7-S
245/40ZR17.
As I have always felt that 15" wheels are a bit boring nowadays, I decided to put these wheels on my '95 325i to give it a more sporty look knowing that staggered setup is fine for E36s. And it did look nice. Not too much as I think of 18"s.
However, I find the front tires a bit noisy. Though most passengers doesn't seem to mind or hear it, I being like one with the car am not sure if that is acceptable. If it is the Contis, then I might get a pair of Proxes to replace it. The rear Proxes are almost new. The front Contis are about 7/32.
As somebody mentioned "oversteering", I did feel changes on the car steering. Seemed more sensitive, and seem go with wavy-uneven asphalt road stretch that I usually take.
Thanks for your more sensible insights.