I agonized long and hard over 17 or 18" when going up in size to fit bigger brakes (still on the to-do list). In the end, I couldn't find a 35" tire with a load rating I liked in the 17" offerings so I went 18".
Some folks like the look of a bigger sidewall. And more is better for airing down but the reality is how many actually do air down when off road? And 35" tires on a 16 or 17" wheel can be mushy when cornering. Tires are a compromise and the truth of it is, most of us do far more pavement miles than we care to admit. And as usual, Carringb is spot-n with the load capacities observation. The 17" offerings are more limited, albeit a bit cheaper. Personally, I'd rather run an 80psi 4080lb tire at 60 psi than be maxed out on the load capacity of a 35" tire on 17" wheels (typically 65psi for a load rating of 3195lb).
2005 E350 RB 6.0 PSD for extended fun
1989 Landcruiser FJ62 for local fun
2011 VW TDI Golf for hwy fun