I love hobbits/halflings.
The worst blasphemy that new (3+) editions of D&D made is changing hobbit-like halflings into retarded no-funny kenders. Hobbits are a mark of classical fantasy worlds, along with elves, dragons, good kings and evil wizards.
A lot of You, as I have noticed, do not like those type of fantasy anymore - which is fine. But it is better just to invent new original setting (like Planescape) than randomly changing classical themes. Because it leads to a parody. The worst example of this approach is PoE: we have dwarves which are not similar to dwarves, elves which are not very elvish, paladins which are not honorable, no-evil necromancers etc. This approach is similar to some new P&P players, which are trying hard to invent original characters so they play as an ent woodcutter, lawful-good dark knight or other shit of this type (just to clumsily break stereotype).
However if you like to create a classical fantasy stay close to the roots. You could change the tone (dark fantasy like in Dragon Age Origins or fairytale like in Drakensang) but the core should be unchangeable. Try to imitate Tolkien because he was a genius and good imitation of his ideas will be better than any modyfication from shallow mind of typical game developer. My favorite game worlds are probably: Drakensang (pure Tolkien + some German atmosphere), Baldurs Gate 1 (almost a pure Tolkien imitation: good white wizard, meeting with friends in the inn in the middle of wilderness, abandoned mine, even the hobbits village), old Might and Magic (i.m.: Tolkien + a bit of Star Treck). And from P&P-only RPGs probably Warhammer (1. edition). I also like some worlds which are totally different (mainly Planescape and Sacrafice, from P&P-only also Monastyr), but not those ones which tried to make "Tolkien world but with elves indistinguishable from humans and hobbits-cannibals" (Arcanum is probably the only exception). And yes, Dark Sun would be better without elves and such.
So stay away from hobbits. Or move to another universe.