Koni yellows + ground control combos with the standard ground control spring rates will be fine. No reason to alter them for daily driving.
Yes, putting a tire on a wheel that is larger than what the tire is rate for will give a stretched look, because it is being stretched. Kosei K1 in 16x7.5 I would run a 205 tire. I would run a 205 on a 7 too because I like the look vs the 195. However, would stretching the tire 0.5 inches be unsafe? Probably not, but why do it at all? There is a reason that tire has said rating, stick with it. The engineers that design the tires are smarter than you. Just remember that.