Long domains are useful if they have a site on them with relevant content as it's generally believed that the domain helps in SEO. I've seen long key phrase domains perform very well in the search engines for the exact search term in the domain.
The domains themselves probably wont have much resale value on their own, however they can be very valuable when bundled with a site that's proven to make money.
Short domains are good as they can generate traffic just from direct type in - for instance, sex.com pizza.com and banks.com but can also do very well in the search engines for simple keyword searches (i.e. pizza).
Naturally just from a vanity standpoints, these domains have a lot of value off their own back and it's generally short keyword domains that you hear about making the big sales on auction sites.
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