The reason people say that domain registration length is a factor is in Google's patenting of a algorithm that applies a filter to domains that are just registered for short terms.
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Originally Posted by Google Patent
Certain signals may be used to distinguish between illegitimate and legitimate domains. For example, domains can be renewed up to a period of 10 years. Valuable (legitimate) domains are often paid for several years in advance, while doorway (illegitimate) domains rarely are used for more than a year. Therefore, the date when a domain expires in the future can be used as a factor in predicting the legitimacy of a domain and, thus, the documents associated therewith.
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Read it here.