Personally, I prefer direct language if it gets to the root of the problem quicker. It's more pragmatic. You just have to pick your audience, because some people get offended by it. But the most productive discussions I've had have been arguments where you can both quickly find the holes in each other's positions, and then move forwards from there. As long as no one is taking it personally, this is very effective.
OTOH, I've been in many meetings where people talk around a problem for an hour, never reaching the conflict about what their disagreement actually is. To me, that is much more frustrating than someone risking offending someone by being direct. But it really depends upon the people you work with and the team you have.