The Lucky attribute is a good reason to choose the halfling race. Rerolling a 1 on a d20 is pretty nice when you are letting the Game Engine roll for you. I actually played a halfling ranger, and never rolled a 1 as a final result, but I also don't recall seeing a re-roll either.
It was kind of nice. I do agree they get overlooked, but I am sure a few individuals may see the advantage there.

Also agree on the feedback on appearance here.