I may be the odd one out here, but I like them both ways. Some are fitted to just sit inside the edges of the table, others have a small overhang of just a couple of inches at the longest edges, (kitchen table is oblong) while other have a 5 to 6 inch overhang on all side. I also have octagonal tables in the living room, where I use a circular cloth first and then put another one overtop but is much shorter so that I get a 'layered' effect.

When I made some dresser scarves for my kid's dressers, they overhang on only the ends by a good 6 inches for each end. The front is kept to the edge so it doesn't interfere with opening the dresser drawers (or getting caught in them when being closed.)