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As I understand the geometry, a wider tire makes it "harder" to turn as you have more of a lever to work against. Harder is relative and most people might not notice. There's also clearance issues to consider. In general, one should use the tires that were spec'd for the bike...that provides the optimum geometry that was designed in to the frame.
Kurt, you are addressing "width" where the original question specifically addressed "diameter".
I missed the diameter issue. So, never mind!!! Not sure that the diameter much affects the steering, although it will increase the rake/trail which does have an impact on steering. Not to mention issues with side/center stands. I would personally run the spec'd tires to take full advantage of all the geometry had to offer.
Rotational inertia is the issue. The integral of (radius^2)*(mass). The smaller the value, the lower the force needed to change direction of the spinning wheel or accelerate it. As a result, gyroscopes are used for guidance and race cars/MC's have small diameter wheels and flywheels.
Many people confuse an noticed effect as being attributed to something that is not the actual cause because they haven't dug into it enough.That's the answer I was looking for. I am not trying to swap out one diameter for another, or change the handling of my bike in any way. A friend mentioned that larger diameter wheels steer faster but I thought that didn't sound right.
Thanks!