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If you go with 20" for the winter, you increase the likelihood of damaging a wheel due to the bad road conditions. A smaller wheel means more sidewall to help cushion the bumps. If you only drive in the city, this may not be a problem. Due to the roughness of the roads where ice and snow accumulate, you will also have a much harsher ride with the bigger wheels.
Using a square setup is fine regardless of rim size.
I would suggest relatively inexpensive aftermarket wheels that accept the bmw center caps.
The wheel gap is very noticeable and the only way to make that look better is to lower the car. Black rims will make it worse IMHO.
GG
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