Sizing a heavy bag is all about how much resistance you want to your techniques, and the types of techniques that you are going to be using, as well as the space that you have to work with.
If you are working on precision and/or are a light striker, then you may want a 3-4 foot bag (Or if you are female). If you want more resistance training, then (as you point out) a heavy bag that is 1/2 your weight would be more appropriate. These bags are also more appropriate for smaller spaces.
5 and 6 foot bags mainly up the resistance level, and they will also move less on impact. So if you are a heavy hitter, you may want a longer, heavier bag as a smaller or lighter bag will sway and move quite a bit.
Personally, I would recommend a water based bag, as you can vary the water to adjust weight, and I've found that with sand bags (I do martial arts and thus kick a lot) that the sand eventually packs towards the bottom which throws off the weight distribution and makes the bottom of the bag really hard.
I am a big fan of a couple of the wavemaster floor type bags as shown below, I find them perfect for almost any level of striking, but YMMV. (Both available from Century Martial Arts).