They're a lot better than they were, and I believe they're improving it bit by bit, but as someone with a vested interest in halflings being done well, I'd encourage you to keep reporting any particularly bad or messy instances.
What I find is that we often get the cut that shows the NPC, and we see the chest to knee section of our character from a back and side angle... if you are wearing nothing at the time, it makes it seem as though this *particular* angle is the only angle they ever actually assessed halflings from for visual confirmation, since this *specific* angle looks pretty good...
