You can go down to 50mm drop before you have to roll the arches. Most people go for 35 - 40mm. I have 40mm cos i dont think 35 looks much different to normal.
I think you would be disappointed with not going for 17's.... a lot of people think 16's then go for 17's (Me included)
Yer once you drop it 40mm the gap will be gone... will look good.
As for removing badges you just need to use boiling water or a hair dryer lol. They come off easy.
Very easy mate...just get plenty of boiling water (Watch your hands!)...and use a something to prise them off, a plastic spatular is ideal to make sure you don't scratch the paintwork...
Depending on your car colour, you may need a bit of t-cut to match the colour a bit better if your original paintwork has faded slightly...
Absorbers are stock, springs are FK Automotive (http://www.fk-automotive.de/)... They are produced by the same factory as Eibach, bud they cost half price...