The official answer is that it doesn't affect MPG. In practice the wider tires will reduce mpg slightly. The effect of different size tires on safety depends on the road conditions. Tires with a wider tread width produce more G-force, but less front and rear traction. They are also more prone to hydroplaning. However, the difference between the two tires is not very great so there won't be a great deal of difference. There will be a difference in replacement cost though.
The higher packages have more safety devices such as pre-collision radar, radar cruise control, lane keeper, etc. (Unless you opt for the silly moonroof, where you trade additional safety devices for a hole in the car and a solar operated vent fan.)
All models have Vehicle Stability Control (VCS) which will prevent doughnuts in slippery conditions if you are going anything like a reasonable speed for the conditions. I have VCS on my 2004 and it's great--especially for that patch of black ice you don't see.
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The big difference in the Prius pakges looks like tire size. How does that effect safety and MPG?
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