IMHO it's just a personal choice. They are so cute it really doesn't matter. I like Ruger's hair a little longer, but sometimes the groomer overdoes it a bit. Also, there is something between long and a puppy cut where he looks good but is easy to brush -- and he likes to be brushed.
Again, IMHO, smaller Yorkies look better with puppy cuts. Ruger is about 12lbs so he looks a little funky with really short hair -- but still cute.