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.