Loz I don't know if you accidently said "wider" instead of 'narrower' but on either a road or knobby tyre, a wider rim will pull the beads apart causing a wider footprint when the bikes is vertical (causing weaving & tankslappers on a roadbike) and reduced footprint when cranked-over.
On dirtbikes the wider footprint gives more stability on sand as the tyre rides up higher 'on' the sand, rather than sinking in it. A narrower rim will give more steering precision, unless you only ride in deep sand, stay with the 1.60 rim, 1.85 rims are for 125 rear wheels.
On a roadbike to make the tyre more 'triangular', to give more mid-corner grip (at full lean) you would use a narrower rim. Although at a point too narrow you lose side contact with the ground as the tyre is pulled in so far that you can't get to the edge of the tread.
On superbike rears back 10 years ago, they were making 190/50-17 size tyres for a 6" rim, the 6" rim flattened the contact patch when the bikes was vertical, causing atrocious handing (high speed weave, tankslappers & no side grip?, now the manufacturers are making 190/55-17's or 190/60-17 which are higher in the middle to make the shape more 'triangular', reducing the contact patch width when the bike is vertical, and increasing the contact patch size when cranked-over.
Having to wider contact patch when the bike is vertical allows the roads 'self steer' forces to have more effect on the bike because the contact patch is further away from the bikes centreline.