Too late to edit my post above but would like to add this clarification;

If the close engagement distance happens before the gun is drawn, then I concur 100% with JohnO's point above: if there is no room to deploy and room cannot be made, then other action is required.

My point however is in the context of the pistol already drawn and the distance closes to arm's reach length. It is under those circumstances that I believe a compact pistol that is more difficult for an adversary to gain control of would be an advantage. Yes, there are retention techniques that would come into play but the shorter-barreled pistol would still be an advantage, IMO...

In any case my experience has been that the longer sight radius does offer some advantage for greater accuracy, but for purely SD in crowded spaces I'm not certain that benefit outweighs what I see as potential liabilities.