My loupe is only 2.5" long. I like it because it's square, and it's got an opaque base, but I wouldn't mind it being longer. I can still manipulate it, but I'm basically pinching it by the eyepiece with thumb and forefinger. I would say anything at least 3.5" would be enough?
The screen's as bright as it usually is-- since it's an open hood, rather than an eyepiece, you can move around freely. It just blocks most of the sun from getting to the glass.
As a result, I typically compose with the hood on, then remove it to check critical focus.