My lathe has both a 5C collet nose (with lever release – such luxury!) and also came with a Multisize collet chuck with a full set of collets – in their original box and everything! As an aside, the box has some surface rust from its past life but the collets are spotless from being kept in it.
With those choices, pretty obvious that I use the 5C when I can but you are restricted to fairly close-tolerance stock. Otherwise, it's on with the Multisize but the thing I notice most – especially relevant to small diameters where you want minimum projection – is that the collet nose is quite a long way inside the closer. Having to pull the work out a bit further aggravates the "can't hold short work" problem, of course. The larger capacity is sometimes very useful, though.