I think a lot of it has to do with cartridge choice. A 2" .357 magnum isn't going to get the velocity needed to make up for using the more powerful cartridge. Not only do you get twice the muzzle blast, but you also run the risk of suboptimal bullet performance as many ammo manufacturers load .357 with the intention of it being used in a 4-6" barrel.
Correct.
Fortunately, ammo manufacturers have come out with what is called the New York load.
Lighter, softer bullets that enhance bullet performance in short barrel snubbies.
Hornady Critical Defense loads being one example which I carry in my .380 pocket mouse gun.
Even .22 WMR loads are being built for those that want to carry the .22 mag in a pistol which I could argue is a really poor choice, but it's better than being unarmed.