Just a few things:
- Its hard to record motion capture for halflings, since most martial artists you will find these days seem to be human
- Once you have your motion capture data, it isn't finished, you need to clean it up, put some handy work into it so that it reads well in game because games (especially stylized and isometric ones) are different than real life (simple example - as a fighter you wouldn't be foreshadowing the moves as much as you see them in-games because it would be a deadly mistake in real life, but in games its a necessity to make user understand what they see and be entertained)
- after all that work you have 1 animation set done - for regular males only. you can apply it on other rigs for different bodies, but as we see it doesn't look good. Now before you start adjusting it, you better be sure you are happy with these animations in the first place or you will be repeating all changes for all body sizes in the game.
What I'm trying to say, at this point in the development there should be no reasonable focus at Larian to make half-ling animations polished before they are finished with other stuff. Its not that hafling's don't deserve it, its just the typical way you work to not have to re-iterate things more often than absolutely necessary because it eats up manhours like crazy. I seriously doubt any of these animation issues are unknown to Larian (some fixes actually might be blocked by code adjustments as well). And I honestly don't think they will be able to fix all issues simply because of priorities and production reality. You always end up with clipping in games, even more so on uncommon body-types.
I'd not worry too much about animations at this point
On the other hand if you think that the body proportions are off - this is the right time to address it as it affects all art assets related to halflings and also their animations.