What is your experience with sweater dresses?

I ask because I found a sweater dress that I really like! See photo 1.

The problem is that I've never worn one before and am worried about:

-a. how it will wear. Will it bag out or get pilly on the bottom?
-b. Proportions. I have short legs. Will this make them look shorter?

They have a similar item in sweater format (see photos 2 and 3) but it doesn't have the yellow sleeves, which I really like. But for wear and proportions, maybe the sweater is better?

This is a 100% wool item, and I'm fairly sure it's Woolmark merino, if that makes a difference.

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