There are quite few factors that go into rotor sizing. Things like your weight, the bike, how you ride, terrain, etc. Many people find that a 160/160 combination works just fine. Larger/heavier riders, will often go to a 180/160 set up as will folks that ride terrain where long descents are common, or if you simply tend to experience heat related brake fade often. A 203/180 or 203/203 set up usually comes into play for very aggressive riders, All Mountain, Free Ride, Down Hill, or really heavy riders. Also bigger heavier wheels, think 650b or 29", that carry more momentum usually benefit from larger rotors as well. But it still depends on the rider quite a bit too.
So bumping up rotor size shouldn't be just because you can. Doing so simply adds weight. It should be based on your performance needs. And as LyNx noted, most forks do have limitations on rotor size. The limitations are usually based on manufacturer testing and fork construction. Going over manufacturer limitations can lead to excessive fork flex, and in the case of standard quick release forks may cause the QR to come loose while riding. Not common on most modern forks, but it can happen if the fork flexes enough during braking. Also frames often have limitations, but not for the same reason forks do. Usually it's a size thing. Many hardtails simply don't have the room between the stays for a 180 or 203mm rotor. The chain stays taper in toward the bottom bracket housing on a bike. Depending on the diameter of the tube and/or how steep the taper is, a larger rotor may make contact with the chain stay. Just depends on the frame design.
Personally, I'm a Clyde, 230lbs, and my prefered set up for XC/Trail is a 180 fr/160 rr. I heat up and fade a 160 front on descents and technical terrain way to easily. Plus I need the extra ommf from the 180 front for hauling down from speed quickly enough.
So take everything into consideration before you upgrade. If your 160s work fine for you, stick with em. If you over heat the brakes a fade em out, or ride aggressively enough that you need the extra power then upgrade the front. You can bump up the rear if you really think you need to, but it's usually not necessary. I find that running a 180/180 or 203/203 makes it too easy to lock up the rear wheel. A skidding wheel has lost traction (obviously) and does nothing to help you slow down anyway.
So, your call. If you need to, go for it. If not then leave it be. :thumbsup:
Good Dirt