Hey--sounds like you have the samre problem I used to! My hair is thin, baby fine, and there's not that much of it. I used to keep it long and in a ponytail but it looked bad. Finally I got the courage to get it cut short...but I think you have to be careful about what hairstyle you choose. I went through several books before I found one that would work with my face shape and the color, thickness, and lack of my hair..XD
It takes a little time in the mornings to style it (all I use is a tacky but wonderful smelling gel stuff, and my hands and a brush, and a round brush for the sides) but it looks MUCH better than keeping it long. Perhaps you should look through a style book and compare your own facial shape and hair type with those used in the pictures--believe me, I saw some that I loved--but if I'd tried getting them, I would have looked ridiculous.
Maybe you should sit down and look through a hairstyle website to try and find your face shape and hair type..? That way you can find the best style for you. If nothing else, short hair--in a generic hairstyle--is easier to care for.