A lot of great information here. Serious spearos can argue this stuff for days. Long guns are harder and slower to swing and somewhat more challenging to load. So the idea to take a little gun and power it way up with multiple bands does seem to have some advantages.
However, it is more complicated than that. Spearguns come in a huge variety of sizes, designs and attributes and all these guns are trying to balance out the negatives and positives of each feature and somehow arrive at the best gun -- for a particular application. There is no one "best gun" for all conditions and situations (regardless of what the dive shop salesman says).
If you over-power a speargun, then the recoil will become unmanageable and this will make the gun painful or dangerous to use and inaccurate. The shafts can even be caused to bend and oscillate during the flight which causes further inaccuracies and also can reduce effectiveness if the shaft is not traveling straight. A small gun is going to weigh less than a long gun, so a short gun can offset only so much recoil.
In general you want the shortest gun possible that will have an effective range that matches the visibility. It does little good to be able to shoot farther than you can see, and it presents safety concerns as well. So long guns for clear water and short guns for dirty water. You have to understand that the maximum range of even the largest, custom made guns that may weigh 12 or 15 lbs might be 35 or so feet. So in clear water, we may be able to see fish that are well out of range, while in very dirty water, any fish we can see is potentially within range - assuming that we can swing, aim and fire the gun, before the fish slips out of the limited visibility.
Longer (and thus more massive guns) will be able to deliver more power (using more bands) and they shoot a longer (and thus heavier) shaft which can deliver more kinetic energy to the target. They also tend to be more accurate than a short gun trying to to shoot to the limit of its range.
Also, fish tend to be more skittish in clear water (which translates to longer shots), so this means that a longer gun is generally selected for clear water -even if the fish itself is small.
I know some of these points were already raised, but I wanted to try to paint a picture of some of the trade offs and constraints which speargun builders are presented with.
Of yeah. the speargun itself must be close to neutrally buoyant or it will be difficult to use and aim - particularly a long gun. So you can't make a really short little massive gun, unless you like swimming with a brick..