depends what u want to do.

TRACS on an 850 actually just applies brake to whichever wheel it detects is slipping. this actually robs u of power, sort of, cause whatever power u put in is retarded by the braking action. (i thought TRACS was standard on turbos/t5.) besides, isn't limited slip on your 97 car? what happens here is if one of the drive wheel (front left for instance) starts to slip, the limited slip differential would transfer power up to a certain extent (25% for example, new 2001 m3 have an impressive 100% transfer) to the other non-slipping wheel (front right then).

adding a strut bar keeps the proper alignment of the front suspension. think a U, where the wheels are attached to each side of the vertical part of U; now bend the top of the U together, the wheels no longer are 90 degrees to the ground, don't have maximum contact to the ground by the wheels, so they might start to slip. strut bar keeps this U in proper form, and helps with putting down power. as for 205-45-17 on 17x8 wheels, i assume u still have stock 205-50-16 tires. since these two tires have the same approximate wheel width and assume they're all the same brand and series/type, the contact patch would be roughly the same. you will notice the difference mostly during cornering. the taller/longer the sidewall of the tire, the more flex u get, the mushier feel in cornering u'll get; but, u get a better ride as that flex absorbs more bumps.

if your intent on using tracs is for snow/foul weather, then go ahead. if tracs for dry, then i say go with the tires and wheels, and u'd get better handling as a plus.