If the car is not being driven in temperatures below 50 degrees F, then high performance summer rubber would be the best option. Since you indicated "daily driver" (although how is a daily driver then not driven in the winter?) then a tire with high treadwear rating like Michelin Pilot 4S would be preferable. You won't be winning any races but neither will you be replacing your tires every 10k miles. You wouldn't be winning races with bag-suspension anyway.
As for wheels, I don't think anyone can answer that question for you. You will want wheels that are as close-to-stock offset (+53) as possible, between 7.5" and 9" in width, and preferably as light and structurally sound as possible. The bolt pattern on the 2004 STI hubs is unique among STIs at 5x100.
Sorry, car is just being driven in the summer time up in Canada! Looking for rims 5x114.3 as there are spacers on my current setup. Wondering what kind of rim setup others are running like a 17x9 w offset of 42 ?
Start measuring carefully because the body is modified. On a stock car I’d fit 17X8 5X100 ET+45 wheels with 245/40/17 rubber and I’d expect it to fit with no modifications necessary. YMMV because IDK what your fenders are like and whether you can run (-) camber or not.
Truth be told the stock 17X7,5 wheels were excellent and it’s a shame if you no longer have those.