Cooperman I am contemplating running 12" wheels but I've heard a few people say that it ruins the ride quality of the mini. The only Mini I've driven was the one I owned when I lived in the UK which was a Mini City E on 12" wheels with a stage 1 kit from minisport. I don't know any different. However with the poor quality roads around here the higher profile tyres would be a better option.
12" wheels are OK as you run with either a 145/70 or 165/60 profile tyre and there is still a decent depth of sidewall to help with the suspension. The Mini suspension was designed to have a short travel and for the tyres to do a fair bit of suspension work, especially on their original 145/80 x 10 tyres.
The problem comes with the 13" very wide wheels where the sidewalls are only a 50% profile and the width of the tyre is too great on a light car to allow the ideal tyre contact load/sq.in onto the road surface. This is especially a problem in the wet as the contact pressure is necessary to squeeze the water from under the tyre and prevent aqua-planning.
I recently drove an MPI on 145/70 x 12 tyres in the wet and it drove beautifully with very predictable handling and good road-holding.