You should play with the amount you feel comfortable playing with. If you feel comfortable playing with $10, you should play the 10NL full stack rather then 25NL shortstacked.
The reasons are pretty obvious, Borgo already pointed out a big stack gives you more breathing space, while a short stack leaves you limited to the premium hands. That makes you easy to read. If I see a shortstacker shoving everything he has to the pot, I know he either has a premium pocket pair, or has hit the flop bigtime. Easier laydowns for me.
Also, if you observe the play on the table, you see that the bet sizes increases when the hand developes. The preflop bets are like 3 BB's, postflop perhaps 11BB, after the turn 22BB's and the river can be huge.
If you play shortstacked, you can only make profit on the flop and turnbets, and you probably miss all the value the riverbets can give you, because you were already all-in on the turn.
Shortstacking can also INCREASE your variance, because ppl call your all-ins more easy. If you have AA, and I have Ax suited and the flop comes with 2 of my suited cards, and you shove, I am more likely to call a shortstacker then someone with entire buyin in front of him. If I call a potsized bet on the flop, I will probably have to call one the turn. The odds are I miss, so I fold. If you have already shoved your entire stack, the math becomes more easy
My tactic is to buy in with like 70-80% of the maximum. I play a few orbits so I have a good idea wwhat the table looks like. If there is value, I rebuy to full stack.