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Yes, a taller sidewall definitely improves ride quality, as does proper inflation.
Sometimes you can find factory take-offs on ebay, or there are lots of aftermarket options as well.

If your car had a standard 18" wheel option be sure to find the proper fitting tire as well so your speedo and mileage remain the same.

I have always found Michelin tires to be the best riding and quietest tire on the market. Yes, they're stupid expensive (sometimes). YMMV.
Last year I popped for LTX's on my Colorado pickup and was absolutely shocked at the difference in ride quality - the greatest change I've ever seen in all my fifty years of driving. I kicked myself for not doing it sooner. Michelins would be my strongest recommendation, even if you kept the 20" wheels. Seems to me the XT4 comes with optional 245-45-20 tires.
 
That's a cheap shot. THE most common complaint of low-profile tires is ride quality. PERIOD. For ANY car.
Tire model and brand has a major direct effect as well. YMMV

If you rely on your dealer or tire shop to set your air pressure then they're likely over-filled - it is more common than not.
 
I have a 2020 XT4 Sport with 18" - I'll swap you for your 20s! I suspect the 18s with more rubber rides a little better than the 20s but I prefer the more aggressive look of the 20s. I've been shopping for 20s but with tires it's an expensive swap.
 
With 18" wheels, you will get a better ride, spend less on fixing pothole damage to your wheels, and generally get a little better acceleration. According to a Car and Driver test a few years ago, they gained a tenth of a second for every inch smaller than 19" wheels, down to 15 inches... about 3 to 4 car lengths in a 1/4 mile.
If you do not drag race you may see some nominal improvement in gas milage. 20" wheels are surprisingly heavier than 18 inchers even with the diameter tires.
 
Just remember that, for the later vehicles, all engine and transmission calibrations are set for the original tire outside diameter. Get more than about 0.4" away from that and lots of stuff goes haywire.

For instance, larger tire OD, tire rolls less revs per mile, speedo is slower; smaller OD, tire rolls more revs per mile, speedo is faster. Transmission shift points also suffer.

Original tire specs on the driver's door sticker and in www.tirerack.com, as well as tire and wheel weights.

Suppose your vehicle originally used a 17" wheel with a 27" tire OD. That gives you about 5" of air and rubber between the wheel and road. You go to a set of 20" wheels with the same tire OD - you now have 3.5" of air and rubber between you and the road. Depending on what you select as cold inflation pressure the new wheels may well have unsatisfactory ride quality........ and that's only the beginning. Bolt pattern, offset, weight also factor in.

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