is it possible to bore the block out the much, reliably? with the 1.6 block
No.
1.7 piston, yes. However wall thickness will become a very real concern.
Do a search for 1.7 . There is a long discussion on this conversion, pro's con's etc...
It would be nice though.
what about the 2.5 pistons?
I've ordered one Mahle 1.8TD piston. To see If I can make that one work in my new 1.9 future engine.
I've been searching for a lot of pistons for my actual engine. It's also a Mahle piston. For the KY 1700d engine. Only designed the same as the 1.6TD pistons. With a thicker head and opening for the oil squirter.
Now I got a 1.7D. For now. I'm now bussy with a VGT exhaust manifold. So I can place the KKK VGT turbo (3.0TDI A6 2007)
