Of late, I'm using a beautiful shiny green eyeliner. Using the green on my waterlines looks subdued and natural, but it really does make me look and feel a little more made-up. Another trick I've learned to keep my eyes from looking too small is to only line the outer third or even half of the bottom waterlines, and have the line taper toward the middle so that it doesn't stop so abruptly.
Not sure if you ladies have tried that trick, but it works wonderfully, since I don't like the way my eyes look so tiny when I line them completely.
At the very least, I've found the using the pencil on my waterlines also puts a perfectly THIN line of color IN my lashline, which is nearly impossible for me to do when I'm actually trying =D
EDIT: ROFL The picture in my avatar is VERY old!! It was taken before I even realized that bright, white shadow wasn't always good on my fair skintone or that drawing wings with the liner would make my eyes look so much bigger, brighter, and downright better =)