Lying down has been refactored as of the current patch; halflings no longer sink into and clip through the ground when lying down ,and they do seem to have been given a differentiated lying pose and animation, slightly. There is a problem, however, in that in doing this, we seem to have lost the independent male/female poses for halflings. Female halflings lie down using the same pose and animations as male halflings, when they used to have a different set.
These are identical pose and animation idles, where male and female are different on other models. Also, for this pose, the hand is intended to be resting on the body, but it is floating significantly.
Sitting used to be a big problem for our small-race friends. They would clip into everything terribly. this has been fixed now, and halflings can sit on chairs and logs in comfort now. Yay! Unfortuantely, the same issue with lying down has struck sitting as well: female halflings are using the male halfling poses and idles, when they previously used to have their own.
Clearly fixed for clipping, but as you can see, the male and female poses are now using the same data, where they were not previously.
Climbing... Climbing presented without need for comment:
Okay, but commenting anyway - they're using the anchor and contact data for human-sized models, leaving them floating out form the ladder and stretching their limbs in ridiculous ways to hit marks that don't suit their bodies.