I have bikes with both 650's and 700's. My road race bike has 700's, my tt bike 650's, my winter bike 650's. My advice - forget about the wheel size and first and foremost find a bike that fits you well. My experience has been the opposite of Tri Girls. My 700c wheel bike fits me the best and I am fastest on it, though I am closer to your size - I am 5' even. My winter bike is no slouch - its a nice light ti frame and try as I might, the geometry is just that little bit different than my race bike and I cannot produce as much power on it. (I'm the longer legged, shorter torso'd variety of short person

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As you've noted getting a good tt position isn't really possible for us shorties on bigger wheels, so yes my tt bike has 650's on it, even at that I don't have a lot of saddle to handlebar drop.