You can play live at whatever time settings you like.
I rarely play anything less than 30 minutes.
Though I play some occasional speed chess because its good practice for when you're in time trouble.
But yes, short chess is very popular.
I was talking to a really strong player the other day (2nded for a British Championship contender). He said he only plays 3 minutes now, and uses the same openings because he's "seen it all".
I couldn't help thinking that if you've "seen it all" then why keep playing? heh.
I have a question: How do you play live chess? The default timer (and that which 95% of players play) is 3 minutes. That's it so short! I've tried 3 min live chess in the past and I always timed out very quickly. I like to take my time and think multiple moves through and their outcomes and live chess does not allow me that. So I just play correspondance.
But just wondering how others manage live. Did you get better and faster thinking over time? It seems crazy to play chess at 3 min