.32 S&W ("short") was used to assassinate our president, William McKinley, and King Umberto I of Italy.
The .32 S&W ammo they make new is a bit weaker than back then so as to not blow up old guns but regular ol' new loaded down Magtech still blows right through a treated 2x4. I think it's actually a good caliber because there are tons of old .32 short revolvers out there available for cheap and some of them are really, really small, true mouse guns. The top one in the photo is an Iver Johnson .32. It's still a 100% reliable, effective get-off-me gun.
You gotta see H&R's "Young America" revolvers. The things are miniscule, smaller even than the Kel-Tec in the picture. Lighter, too.
.32 longs are very nice to shoot. It was a preferred target round for many years. Federal sells some pretty powerful wadcutter ammo.
I definitely think either .32 short or long is more effective in a handgun than .22 LR. The bullet weighs 2.5-3 times as much. I figure it won't deflect as much.