It's definately all based on the individual. I know short people who do well for themselves, and one's that suck. It really depends on a number of factors.
I can't really answer for people on this board who are short as I'm 5'9 1/2 (was measured 2 weeks ago for a pre-op surgery appt) but I do have some experience knowing what it was like.
I was born with a heart problem and I was always one of the shortest kids in my class when I was younger. After my last heart surgery though, I grew about 7 inches. I remeber being self conscious and picked on a bit back then for it. Yeah, maybe it's slightly harder for people to work their way up in the world being shorter, but that's if your always worrying about it. People sense if you're an insecure bastard, and who thinks highly of an insecure person? Just enjoy who you are.
My dad for example seems to never be happy. He's 6'1, wished he was 6'3 or 4. VERY strong and ripped, but pushes harder to become a bit more so. Personally..I really don't give a ****. I'm average height and weight and would change nothing about my size, even if I were given the opprtunity to. It doesn't really matter in the grand scheme of things if you carry yourself well.
And the comments about good looking vs non good looking. I agree that shorter guys who are above average looking do better than slighty taller guys who aren't. So instead of whining about how you're short and find it harder to pick up women, why don't you try improving how you look. It will do wonders for your confidence. I can speak from experience here.
I used to hate how I looked. I was born wih a cleft lip and pallate so my lip is a little different. But I worked on myself a bit, lost the glasses, got a rhinoplasty, and honestly it really does do wonders for your confidence. I also worked on my grooming too, not obsessively, but make sure I'm meticulate about it. Now I get told all the time I look great, I'm no longer overly worried about it, and it shows.
Guys..What I'm really trying to say is everyone's self conscious about something. Whether it be size, looks, or whatever. Instead of complaining about it. Do something. Accomplishing something along the lines of making yourself feel better is an amazing feeling, and very rewarding in the end.
Yes, with regards to height you might be SOL, but work on improving how you look, your knowledge on something, Innergame.
I personally find that inner game controls your ******d appearance. If you're comfortable in your shoes, you'll be confident, relaxed, and just better off in general. Girls will notice your confidence and definately be more receptive as a result. Guys will repect you a lot more as you're not unpleasant and trying to be someone you're not.
Last thing. If a girl rejects you just because you're "short"..do you think she'd be worth keeping anyways???