The only real differnce between coilovers and the regular strut/spring setup is the body.
Coilovers do not neccesarily use smaller dampers, they can use the same inserts but jsut use a body that doesnt have as large a spring seat. The Strut casting is threaded and an adjustable spring seat sits on this thread. As you move the spring seat up an down the thread it raises or lowers the car without altering installed spring height.
Handling isnt a function of design, but the component settings. So a coilover with the same damping rate and spring rates as a regular setup will give the same result. The only real diff is space saving and adjutability. But due to the nature of coilovers being performance items, they are almost always higher quality inserts.
The ride is determined but what spring you use and how hard the damping/rebound rates are.