Mary, Charlie is adorable in that pic!
I think the shorter cuts "look" like the coats are wooly/cottony by nature of the cut. I think a shorter coat will look fine on a silky coat. If you are on facebook, you should look up some well known yorkies on there...the FB page name is OwnedbyYorkies. They are so cute and they have silky hair. They wear clothes a lot so I am guessing they don't have super long body hair. Their faces are all cut shorter to have that round look. They are too cute for words.