Li Shenron
Legend
The rules seem pretty clear to me. The ability specifically says "You can attempt to hide even when you are obscured only by a creature that is at least one size larger than you."
No they are not, and the fact that every time a discussion about hiding starts you get many pages of different opinions, is the proof they aren't ever clear enough. One genuine problem is that half gamers are always thinking about hiding as an action to become hidden, while the other half focuses on the condition of being hidden; another is that some mainly refers to hiding behind something (i.e. your entire self is not in line-of-sight) while the other refers to hiding inside something (i.e. "merge" with foliage or shadows so that you aren't noticed even if that doesn't mean the sight of each bit of you is blocked).
There are at least 3-4 different places in the Basic rules where you should check to get an overview of the subject: Hiding (p.60), Vision and Light (p. 65), Unseen Attackers and Targets (p.73), Blinded and Invisible conditions (p.105). Probably the description of the Naturally Stealthy halfling ability is the clearest one to understand.
I suppose if I study these 5 descriptions carefully, I will find out I've been wrong all the time. The fact that such study is required to play the game "correctly" already disqualifies it from being "clear".
Edit: also, please avoid saying stuff like "if you want to change how it works..." because it sounds insulting even if that's not your intention