I’ve decided to make up a short all-in-one guide to summarize what we know about SEO for URLs. And if you have something to add, please do. So he we go: Length of the URL: no more than 3-5 words in your URL. According to Google’s Matt Cutts if there are more than 5 words…
[Google] algorithms typically will just weight those words less and just not give you as much credit.”
Here is one more evidence in favor of short URL: recent research shows that short URLs within Google SERPs get clicked twice as often as long ones. So by sticking to short URLs you get both better rankings and better clickthrough.
Short URLs will also help in direct type ins of URLs (if anyone still uses that instead of Google).