Most of the fighing in Iraq was close combat inside homes where the short barrels were a huge help. A longer 20" barrel would be in the way.
Walk through your home with your hand stretched out making a fist. Then do the same, with a ruler sticking 5.5" out farther than your fist. This is the same difference in length between an M16 and an M4. It isn't that noticable.
I would argue that the difference between a fixed and collaspable stock would be more noticable clearing a building than a few velocity adding inches of barrel that could mean life or death for both the soldier and the badguy.