There are different knives and different people. I'm willing to make handles to accommodate both. Aside from trying to make a knife look good, which is a subjective and arbitrary judgement... I think the length, size of a handle needs to be governed by the intended use of the knife.
IMHO, you could hold a knife handle with the handle entirely encompassed IN the hand. This way the butt of the handle would push into your palm and feel secure. This suits compact utility knives and hunting knives very well. But that type of handle on a combat, bowie, chopping type knife would find the butt pounding into the palm - quite uncomfortable. On these types an longer handle that extends THROUGH the hand would allow a range of grip adjustment and greter comfort as well as better safety. In the same vein, I find long handles better for providing torque and power through the blade, but shorter "palmed" handles provide better precise control. "Palmed" handles also tend to keep the blade oriented in a more natural position for fine work.
Its hard to explain but I find the difference quite clear when using a variety of knives. My 2cents. Jason.