But, them arches/wheels above are wider than the wheels you are planning to use, but then again who cares as long as it works and is legal.

Re; the rear diffuser thingie.
Depending on where you have your upper 'roof' of the diffuser, could you not have the exhaust exiting through the boot lid, or through the passenger side of the rear bumper (on the side, IYSWIM)..?