I've mentioned this before, my friend's shop has built a variety of Gen. 1 VMaxes: big-displacement, NOS, turbo, and supercharged, including combinations of the above.
A couple of the guys went with 17" rear wheels, and modified powerplants. They were very happy with the increase in acceleration, and credit went to Jon Cornell, because each of those two guys had bikes built at the shop that looked like catalog advertisements for UFO Products. Hot, hot, hot!
Their astonishment at being passed by a stock Vmax on top end, resulted in some phone calls to Ohio to speak with Jon Cornell, the guy at UFO. Jon took their comments, and then called the owner of the shop where Jon had sent the components for the bike builds. That would be my friend Steve.
Running a shorter height wheel/tire combo gives you more acceleration, but it affects your top end. Not in a good way, if more top end speed is your goal. Your gearing is 'shorter' with a smaller wheel/tire combo. More acceleration, but less top-end.
When Steve, the hot-rod bikes' builder, told Jon about the 17" wheels, he laughed and understood the 'problem.'
Be aware of the 'problem' of a numerically-lower final drive. Wind-drag and your bike's power output will conspire to lessen your top end. Then again, how many of us are looking to head to 149 mph?
A word to gentsvmax, the shop owner/VMax builder found that driveshafts were a common point of failure on the hairy builds. As Sean Morley has mentioned before, better to blow a driveshaft than ruin a pair of engine cases or a gearbox.