After a lot of back-and-forth some years ago, we settled on a third option: If the error bars would be too big (for whatever definition of "too big" we used back then), don't show the data and instead show a "not enough data points" message. Otherwise, if we were showing the data, show it without the error bars.
It seems like the options are:
- no error bars which mislead everyone
- error bars which confuse some people and accurately inform others