While I was also hoping that they would have had more unique... deficiencies related to their size, I think they are handled pretty well as a PC race. I look forward to seeing one in action.
The Witch on the other hand... we didn't really get enough to go on. We know that it will be an Arcane Controller and will use Wizard powers, so pretty much just a wizard build, which is fine, but from what we're seeing, it better get some really standout class features, or something, because otherwise... just a wizard with a free feat and different flavour text (and probably a few less other things).