At 4 ft 7 (female), I've had to develop a very thick skin. If people make a short-ish joke at me, I just give them a puzzled look and say, 'Sorry, that just went right over my head!'
Some people think you haven't heard every wisecrack in the book!
I know a lot of the 'jokes' or terms I hear are meant with affection and I've reached the age where I really don't give a damn anyway.
The main way shortarse-ness affects me is practical, in terms of not being able to reach stuff on high shelves, etc. but I can still get into kid's clothes and actually get away with quite a lot of lip. Can't do nuttin' about it, so I just crack on.
ETA: It must be much tougher for short men, though. The likes of Ronnie Corbett perhaps became comedians partly as a defence against the ribbing. And good on him for not shying out of helping with nappy duty for the grandkids.