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Newer cars such as the Corvettes, M3 indeed do have larger wheels, however it's to provide larger contact patches to try and hook up some of the increasing horsepower that these cars are generating.
They tune for larger wheels in mind, so the ride and handling shouldn't suffer to much. They also have the power to overcome the inherent increase in unsprung weight, however those who truly want to reduce the unsprung weight would go with forged magnesium rims, that way drivers can have the best of both worlds. Large contact patches with minimal increase in weight.
Also have you tried to clear some of this larger braking systems with tiny wheels? It just doesn't work.
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