I'm looking at some 16 inch wheels for better ride quality and cheaper price, wanted to know if anyone has replaced them to a smaller 16" size and will it be enough to clear the brake components?

 

How many miles are on your HS? How long have you had it? Does it have original struts and shocks? How old are the tires? Do you have 17 or 18 inch wheels? What air pressure do your run?
The rear shocks do wear out first usually and affect your ride more than the front. They are inexpensive at $50 each and easy to replace, but OEM is the only source. Any local repair shop can install these in an hour or so.
https://parts.prestigelexus.com/p/Le...xoCIKUQAvD_BwE


I do not think anyone has done that and it is probably not going to make as much difference as you expect.
It is known that just changing the tires will improve ride quality. There is a big difference among different tires in ride quality reviews. I recommend you check out Tire Rack reviews by searching tires for your HS and look for those rated highly for a comfortable ride. There are both purchaser reviews and Tire Rack test reports. I have bought tires from them for years. They will ship directly to a local shop who is in their network of installers. I even had them shipped to a Mr. Tire!
https://www.tirerack.com/?ef_id=CjwK...BoCIPsQAvD_BwE