I have 16" wheels on my daily driver 52 1/2 since '95.
For almost 7 years I always used 235/85/16 tires.
I had to use longer bolts and 1/4" spacers for the front to clear the tie rod ends.
When turning it, just cleared the fenders.
Under heavy load the rear tires where also rubbing slightly on the bed.
I kind-a-liked the look with the big wheels. Many thought it was a 3/4 tonner.
This spring I switched to 235/75/16 radial tires and handling improved greatly, especially on the freeway.
No more rubbing of the rear tires either.
The truck is faster now getting up to speed under acceleration (great for city traffic).
The milage did not suffer significantly.
The whole truck sits lower about an inch, which looks more original and the truck hugs the road more
Bottom line: 16inch wheels with 235/75/16 radials are the way to go for a daily driver.
There are too many problems associated with the larger tires and milage does not improve significantly and make up for it.