Pre-flop is very dependent on how aggressive Villain is. Is he raising most hands he plays, or is he just calling all the time?
Unless Villain is raising most of his hands pre-flop (and most drinking K7-playing Villains aren't) I'm folding even A9s to his raise (and maybe even bigger hands than that if he's usually super-passive pre).
I think flatting pre-flop is by far the worst option; the reverse implied odds are enormous.
If Villain is very aggressive pre-flop 3-betting is okay, but I would make it at least 40. But even then since your image is aggressive Villain may get sticky against you post-flop (or repop you pre)...which again makes me want to fold.
As played you hit a great flop. Villain's weak bet almost always means a weak pair or a draw. Raise bigger, say to 80 or so, and plan to shove the turn. This line should maximize fold equity against pairs, and he's probably not folding the flop with a flush draw.
After leading weak on the flop, flatting your raise, and leading the turn he will almost always have a flush. There isn't really a 'bad' way to play it, but I don't like raising to 170 here. I would either raise to 110-120 or shove. Raising small allows him to donk-shove with some weird hand, and most people wouldn't expect you to shove the nut flush so you might get calls if he has something like K8 with the K
thinking his outs are good. Also, if he happens to have J9 you want to get the money in now before a fourth diamond comes.