'S' curves are the bane of my existence. Like you, my room limitations create the need to S curves in a couple of places. I hate them, and unless they are extremely broad, they don't look good either. Operationally, you'll get different answers, but in a perfect world I'd like to have the length of my longest consist piece - in my case that's either the length of a scale E-8 unit or an 18" passenger car. Even half that is worth while - I find that especially with some steam locomotives, the front pilots like to "straighten" out before changing direction, and this is especially important with switches. I've put as little as 5 inches in front of a switch and solved a derailment issue in the past.
The good news is that if no switches are involved, most engines will take an 'S' as long as you stay within the recommended curve guidelines. I think MTH, for example, rates their ability to traverse a rated 'S' curve in reverse. If you buy an engine rated O-72, in theory it should run backwards through an O-72 'S' curve. It may look absolutely horrible doing so, but it is what it is.
I worry about it more at higher speeds. My E-8s are rated at O-42 or less, and when I put them through an O-60 'S' curve, it really seems like a lot of stress on the couplers. At 60 SMPH, it would snap every neck in the passenger cars. Not very prototypical to the eye, either. I wish I had the room for some nice sweeping O-120 or O-180 curves, but that just isn't reality