Shorts should have at least a 12" inseam unless they are running shorts.I guess I'm oldschool then. When I grew up, shorts were actually shorts, they weren't potato sacks. The "baggy" look was coming in when I was high school, so much so that the basketball uniform I wore my sophomore year were the oldschool "John Stockton" shorts. The shorts on my varsity uniform the next year were all the way to my knees.
Personally, I hate the baggy look and spend extra time online looking for shorts with 5" or 6" inseams. Most shorts these days are 10" or 11" by default.