Actually, taller springs and/or pads are a good idea. The only drawback is the car doesn't look as "lowered" and you may lose a bit of handling prowess. I love the idea of stock wheels and the TD badge! Heh-heh. But in the end it mostly depends on how YOU want the car to look, both in ride height and wheel appearance.
BTW, with all that "go" power you may want to check out brake upgrades, I started a thread over in the Performance Paddock on W124 brakes a couple weeks ago.
Good luck,