have problems to imagine how a good looking intimate scene between a tall person and a very small person would look like. Especially if they try to use the same scene for the same event when one char (you + companion or other NPC) or both chars (you + dream ) could be any race or gender.
Did you ever take a peek at the thread about it, Mad? Small characters need their own choreography and considerations that have to be taken into account - they do for all scenes, but most especially so for ones that involve interacting with other character models directly as intimate scenes do - and for the vast majority of scenes you cannot simply use the same anchor points and animations as medium sized participants. The thread is a lengthy but mature discussion of what needs to be done and considered, and why, and if you're finding yourself in a "can't imagine how they would" situation, and leaning into the idea that they shouldn't because of that, then I'd highly recommend having a read of the thread (Though I'd also strongly suggest you drop me a line for the intact version of the discussion, that contains the visual refs throughout, otherwise following along is pretty difficult).
Gnomes definitely look a lot better all around than halflings - the cynical part of me says that the feedback was taken into consideration and gnomes got some attention and care as a result of it, but halflings will be left as they are - but even they have some of the big issues still.
I read through most of the thread (outch, my eyes ) I saw your examples of you + dream (when holding hands one of them must be floating or the other one buried in the ground) and I saw the quiz ( which of these characters is the halfling?) I did not see an example for a good looking scene between a small and a medium character. To be fair, this thread wants to point at problems in this game, not to show the top 10 of best looking romance scenes in this game. When I say " I cannot imagine how . . ." this is a problem with my imagination. It does not mean it is impossible and it does not mean that the devs should not try. It simply mean that I do not know how to fix the problems that currently exist.
The examples from Lord of the Rings where you compare humans and halflings are great. This is really 15 years old?
a bit off topic:
Maybe its a problem of how good graphics have become. This was less of a problem when characters were just a few pixels or polygons. I think Mario has a cap and mustache because they could not make good looking mouth and hair with a few pixels. Now we have the problem "How do I create and animate a fantasy race in a realistic way?"
Maybe this is why I often like anime or cartoon style. It is not intended to be realistic so devs can do some stuff that looks cool but is unrealistic. Just my personal taste, not a suggestion how to do things.
Prof. Dr. Dr. Mad S. Tist
World leading expert of artificial stupidity. Because there are too many people who work on artificial intelligence already
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Prof. Dr. Dr. Mad S. Tist 
