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Looks like Legit01Rolla 8th gen there - he posts on TRDforums, might be able to ping on him directly to find out exactly what he was running in that pic.
Another option is getting the correct offset and going with spacers - will give you some options down the road, unless you intend that these will be the one and only wheels you want to run on the car.
As for springs - H&R, Eibach (TRD), Whileline, Sprint are excellent performance springs. Coupled with a good strut, will make for a decent handling car without destroying the ride. Drop will not be excessive with these springs, as they are keyed more for performance than with the stance of the car.
If you are looking drop it more than 2"-3" - only options are to run coilovers or run bags (air suspension) on the car. Since you've already started looking at coilovers - what is left is determining how much you want to budget for the coilovers. K-Sports - heard both good and bad with them, they have been redesigned compared to their initial introduction - so if quality control has improved, hard to say for sure. Pricewise, they are tough to beat - if you are looking to slam the car, K-Sports are the one of the least expensive ways to go. Just keep in mind, the suspension is a critical piece of the car - if you can shave money elsewhere to invest in a better suspension, then I'd recommend doing so. Getting the car low to the ground is easy, making it ride well when it is that low is the problem - like that old adage says, you get what you pay for.
Good news is that the 7th gen and 8th gen share much of their suspension - so you have some options / flexibility of what is out there.
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2002 Corolla S, 1.8L 1ZZ-FE VVT-i
2003 Matrix XRS, 1.8L 2ZZ-GE, VVTL-i (RIP)
2009 Matrix XRS, 2.4L 2AZ-FE VVT-i
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