Tire upgrade handling question 16 inch to 17 inch

I am giving my grandson my 2002 Tundra Ltd. and I am doing a few "upgrades" beforehand.
The truck came with 265/70R-16 tires on the ugly "starfish" wheels. I installed new Michellin tires three years ago on them and half of the tread is remaining. In an effort to improve the appearance I installed a set of 2006 Tundra OEM 17 inch spoke alloys that had half worn tires size 265/65R-17 Bridgestones. With these replacement wheels set to recommended inflation the ride and handling leaves much to be desired. The suspension is known good with recently installed new Bilstein 5100 shock and the front is set on the second setting. Ride before was great. With these 17 inch 65 profile the ride is very harsh and constantly feeling "squirrely". I know that the slightly lower profile (65 vs. 70) can make the steering quicker and the ride harsher but this seems beyond what a 7% reduction in profile should create. The overall tire height and width works out to be the same. Before I invest in new Michellin's for the 17 inch wheels is the ride and handling that I am experiencing expected to be the same? I wouldn't think an alignment would be necessary if the total height, width, and wheel offset is the same - am I mistaken? Adding to the confusion is that since installing the 17 inch wheels my ABS has started engaging prematurely when it never engaged at all - Tire related?