It'll fill out the wheel well as soon as you get a suspension on it. Until then, 4x4 city. It'll look higher than it does now.
Bigger wheels create the illusion of more fender gap. They go hand in hand with suspension, which sucks, because I can't afford both at the same time either. I'll just have to keep my wheels (as soon as I get them) in my room for a little while.
As for suspension, I'll be going with H&R Coilovers. Can't beat german.