I think it all comes down to the particular pair of shorts. ( I too, struggle with all fat going directly to my thighs).

I love my pair of Primal Wear shorts (which have the gripper elastic) because the elastic isn't too enthusiastic so I don't feel like I'm bulging on each side of it.

I have another pair of bike shorts that I don't like so much because the elastic is tighter, so I feel chunky on each side of it.

I also tend to bike in a plain pair of shorts from title9sports - they are the "not so tight fitness short." Essentially a plain cottony pair that's form fitting, not squeezing. They don't move around and are great to bike in (no padding, though). So, no elastic on them and I love them.

All of those shorts are around a 5" inseam - a length that I find very comfortable.