I have a 3" 686, which I carry in a Sparks VM2 (IWB) holster. It conceals just fine. At least nobody in Seattle asked if I was carrying (or just excited to see them). The slightly smaller 66 would do as well. As noted, it is essential to have a good belt and holster, even if you have to wait for one. Mine took 12 weeks to deliver, and that's fast for Sparks.
It is not as easy to shoot as a 4" by any means, but it's not a belly gun either. Watch Hickok45 hit the gong at 80 yards, and blast 8" plates at 20 yards as fast as he can pull the trigger. Recoil, with the right grips, is perfectly manageable, even with hot magnum loads. I have Ahrends boot grips on mine.
The hammer does not snag if you cover it with your thumb until clear. I got that habit from using snap holsters, and it still gets the job done. For pocket or purse carry, hammerless is the way to go. You could grind the spur off too, but leave enough of a stub to act as a stop in the frame.