I think smaller groups are good for eliminating options quickly, IE if 3 rounds shoots 2-3" pattern there is no point shooting more! When folks talk about 3shot groups being of little use its in the positive direction when cherry picking. If a 3 shot of X charge shoots 3", 3 shot of X+.5gr shoots 1/2", and a 3 shoot of X+1gr shoots 3" and someone goes "Wow X+.5gr is a 1/2MOA!!!!" when the probability is those happened to land close but aren't repeatable.
That's all.
Yes we all do it different. I shoot a single shot velocity ladder on new combinations looking for pressure, but I also pay attention to where those shots are hitting the target. If they're a shot gun pattern on the target then chances are that combo at that seating depth isn't gonna work for me. If 5+ shots in a row across a varying powder charge stack up at 1" (esp. at a velocity I like and pressure is good) then I'm going to use that info to test a larger group of shots in that charge window.