The idea about using 16" rims is about tyre availability in a range of styles. I like AT type tyres as they are useful on all surfaces in all conditions. In 216-65-16 I like the Yokahama Geolander AT/S. These do everything most people will ever need. Alternatively Pirelli Scorpion STRS are a good all rounder with a slight road bias.
With 17" rims, I'd go with Pirelli Scorpion STR in 235-55-17. You can't go far wrong with them.
On my Discovery 3 I have Pirelli Scorpion ATRs in 255-60-18. These are awesome but sadly they won't go in the Freelander's arches.
 
I've got 235/55/18 M/S rated road biased tyres on mine. They're fine for my current commuting needs, but are ok off road as long is it's not thick mud. The clearance is about 5mm between the side wall and steering arm and about the same between the tread and spring cup. I won't use spacers on a car that my kids would ride in, so I can only fit tyres that will be accommodated in the factory setup.
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I’m liking he look of them general grabbers in John caddock, hoping they will squeeze in.

I had a set of General Grabbers which look good. However they were dreadful in the wet and horrendously noisy at any speed, especially 50 to 70. Horrible things, which is why I didn't want ATs for daily use again. I have 18" for road use and 17" rims with ATs for off road use.
 

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