Larger diameter tires can give you a larger contact patch fore and aft.
But they reduce torque, so you must gear for that. Now, you can often get tires that are lower profile that keep the outer diameter, but allow larger wheels. With street tires, this can be good, as the shorter sidewalls can be more responsive, but race tires are constructed differently, so that's not always a benefit.

But larger diameter wheels and tires can add rotating mass which is hard to spin up and down, so it can hurt accel and braking. Of course, the tires and wheels must be combined to know what you have.

If the overall package is heavier the extra weight is unsprung, so that's bad...worset han if it were equal amounts of ballast. So it's a tradeoff. If you have lots of power and lots of unlimited braking capability, it can be worth it, but generally it's not a 'given' that larger is bigger. In lower hp cars, it's usually not better.