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The only reason that your lack of muffler is helping is that if you give it to much gas it will deafen you, a tuned straight pipe would help, or a megaphone (it would be quieter then nothing) but the lack of muffler is making your exhaust shorter so it's going to be more efficient for a higher revving engine, you most likely want it small around and long for slower RPM's, but mostly you want it tuned for your engine and engine speed, the cost is not that much higher for larger pipe, if a larger exhaust pipe really gave you better mileage, more power and girls chasing you down the street, then wouldn't it be standard on every car? no, because the people who designed it were good at math.
check out what tires are avalible in 165/60 R14 I think that is the correct size, tires for the Insight and for the Prius.
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