Longer is better as long as you can keep the cut smooth and true.
However, all machines have some runout, and few setups are perfectly square, so a little nit won't matter in a 1 inch tenon, but will totally screw up a 3 incher.
Other than leaving 1/4 inch or so left in the workpiece, I cut as deep as the method I am using will do accurately (and funny, as I grow older its not as deep as it used to be, maybe the nit is in the operator.)