I think you missed the point. PCs are explicitly exceptional. Just like there's probably an orc somewhere with Str 3 for whatever reason, there's also a halfling with Str 22. There only needs to be one -- the PC.
No, I got the point, I just don't agree with it personally (like you said, no wrong answers...

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I'll put it this way, comparing PC to not-PC is not constructive really if you already believe PCs are explicitly exceptional. If you feel that they are, they will be superior anyway.
For me it is about PC vs PC. Do I think a STR 20 Halfling should be as strong as a STR 20 Dragonborn? NOPE! In fact, I don't think a Halfling should have a STR over 16, personally, because they are a small race. PC or not is immaterial. Does it cause some friction for the Strong Halfling Fighter? A bit maybe, but not so much I want mechanical bonuses to override how I think the "reality" of fantasy should work. Currently, a STR 16 can allow a PC to lift, drag, push, etc. 480 lbs! That is really strong already for most people. Now, make that a halfling who is 3 feet tall with an average weight of 40 lbs. Even at twice that weight you are talking about someone lifting 6 times their body weight! But that is just as a STR 16, so like WOW but not impossible. Make it a STR 20 and now you are talking 600 lbs... Sorry, but for me that is just too much barring magic, divine demi-god lineage, or something.
I'd rather see racial minimums and maximums and not worry about modifiers to starting scores. I don't want the world's strongest human to be as strong as the world's strongest half-orc. Sorry, but no thank you. A STR 18 human is close enough to the STR 20 half-orc to make me happy.
Now, all that being said, I know many players (most I can honestly say) either want their STR 20 Halflings or frankly really don't care one way or the other probably. From a game design perspective that is perfectly fine. I can always house-rule the game as I see fit when I DM and I am okay with that. I certainly don't expect others to have to play by my vision.
Anyway, overall, I voted for the second option. If PCs have racial modifiers (as currently they do), every member of that race that are not PCs should get them as well.