I prefer small Icons and shortcuts on my desktop, startmenu, programs and taskbar since they use less monitor space. Plus, my vision is not that bad that I need huge Icons on my taskbar and desktop.
I also can fit more icons and shortcuts on my desktop, taskbar, and Windows Explorer window. Plus, it makes me move my mouse less since all my icons do not take up as much screen space.
I guest if I have a 20-30 inch high resolution monitor I will prefer bigger icons. But, for my 17" medium resolution monitor I prefer small icons.
I just have a lot of Icons and shortcuts on my monitor since I use a lot of program, and the medium icon size in Windows 7 is kind of large, and the large size icons are huge for the default settings, so I set my icon size to small.
I just put the shortcuts I use most often onto my Taskbar, and move the icons I use the most to the left of my taskbar, and the one I don't use as much to the right.
On a daily basis, I just use my web browsers and Media players.