My wagon used to look as high as yours...I cut 1 coil off the front springs and put #1 pads and it now it looks perfect. No longer is the car about to take off!
#1 pads pn: 201-321-0984 that is for the 8mm version, there are (4) total and each add 5mm. For you, start with #1's for sure
Ride quality is no different with one coil cut and since they are not progressive springs, it makes no difference. With your 4matic, you just have to make sure you cut one entire coil off if you want to do it so you don't reverse anything since you don't have that luxury.
I am running 225/50/16 16x8 8 holes not a single rub at any point.