Sundeep, IMO, this boils down to "personality & motive." Frankly, as I filter your question through my mind, what I hear is: Am I a fact-based, honest & upfront, no-nonsense type of communicator, or do I allow for Political correctness & word-parsing to enter the situation and manipulate the outcome? I don't believe one is better than the other.....just quite different.
Therefore, it may be that either or both ways could be an acceptable approach. I will add that it should come into consideration, the subject matter, the person(s) with whom we are communicating, what's at stake and what our intention is, toward the outcome.
I will admit that I am strictly, the former. "Diplomatic," is a nice-sounding term and can easily sway the average person into thinking it is "expected" of him/her to add the frills in verbiage, while walking on egg shells. On the other hand, I quickly equate "diplomacy" to "politics," and we can clearly see, throughout history how manipulative, deceitful and two-faced, 98% of the world of Politicians is. Always has been, always will be.
Common sense may allow for the vast majority to agree there is a time and place for both types of individuals to bring about positive results.
"Personality" however, directs us one way or the other, in everyday realistic interaction.
I'm a Sgt. Joe Friday kind of gal, Sundeep. I appreciate the "Facts, Sir....just the facts." I'm comfortable with that and can go on from there.
What's YOUR opinion of your own question?