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Yes, the 17 inch conversion is well worth it for tire selection alone. As for emulators, less important than correct weight springs.
A 400 would be a better choice if you are interested in racing and/or if you are primarily going to track on larger tracks. A sv650 is maybe the best of both worlds for a track day bike but it is no longer the competetive bike to go racing in LWT classes.
All that being said, I have several race bikes and still keep my 250 on the track. Why? Because I love that little bike. And if you love yours - keep it and ride it on the track no matter what anyone says.
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