Personally, I am not a fan of the 3e halflings since it looks sooo weird when they are alongside any medium-sized creature. But that is my opinion, and it is not like I believe my preference is any more "correct" than those who do like 3e.
Anyways - as a huge LotR fan, I very much enjoy the design of hobbits in general (I find them cozy and amazing <3 ), but I like the artwork that Niara showed us in the beginning of the conversation even more for playable characters! They looked like they belong in an adventure group without necessarily being as "goofy" as a hobbit character would be (by design). I mean, I could easily imagine a very cool halfling rogue, wizard or ranger by the standards that Niara provided!
In any case, I'll definitely agree on that the models of both male and female halflings should be slimmed down a notch or two. If I wanted to play a more curvy/sturdy short character, I'd pick a dwarf. I agree regarding the headsize too.
Thanks for yet another amazing post, Niara <3 Sorry I was late in finding it, but I am here to help you guys bump it up now. :]
Hoot hoot, stranger! Fairly new to CRPGs, but I tried my best to provide some feedback regardless! <3 Read it here: My Open Letter to Larian