Personally I do both extremes. Nowadays, shooting closeups (mostly insects) is about the only time I shoot color and small format. Everything else is BW medium or large format. I feel I don't try as much to be artistic while shooting insects - perhaps because of the technical challenges that you mention - but they come out quite satsfying nevertheless. Every kind of photography (every kind of art) has its own set of challenges, conventions, rules - entire language games within which they function - taking the language games of barn doors or peppers and imposing it on damselflies is arbitrary. That said, here are a couple of my shots which I quite like as closeups - I did not go out of my way to make them artistic but they came out nice anyway. Now we must decide which language game they fit.