Psalms are indeed very prevalent in Jewish services, in some ways forming the backbone of the siddur (prayerbook). Not all psalms are used on a regular basis and the order often varies from the numbered sequence. Also sometimes individual verses from various psalms are strung together to form what is essentially a new composition, for example Y'hi Chavod.
There are psalms that are generally known to be longer. For example the psalm for Wednesday (Psalm 94) is the longest among the Shir Shel Yom (song of the day) while Friday (Psalm 93) is the shortest.
Among the examples you bring, Psalms 117 is usually sung as part of the Hallel service on festival days and at the beginning of most months. It is quite short, but it fits into the larger structure of Hallel that is based on Psalms 113 -118. Specific practices vary, but at my synagogue, each of those psalms gets sung with a unique melody that sets it apart from the others and contributes to the build-up to the climax of the Hallel service.
Your other example, Psalm 119, is so long that I cannot recall it having any place in the standard liturgy, although if I have overlooked it I am sure someone will correct me. It would not surprise me if its length had something to do with that choice. The rabbis were often practical about such things. For example, according to Seligman Baer, the reason that we leave off certain psalms from the weekday service that are still said on the Sabbath and Festivals because it was too much of a burden to have such a lengthy service on weekdays.