So how would you change them? Or maybe we should start a whole other thread on how people have made various races interesting in their campaigns? Because I don't have much of an issue with halflings and I don't have a problem integrating them into my campaign world. I just fill in a few details here and there to make them feel a little more integrated. Of course chaosmancer will dismiss that as not relevant.
A new thread might be good. And I don't change halflings so much as add to them, most of the time.
In my Crossroads game (alt history Earth where crossroads lead to other worlds and Earth is full of fantastical creatures as a result, and also where the heirs of Mordred rule the Brithonic Empire from their seat in Cardiff with the help of the Queen Mother, who is also The Morrigan. She was the patron of Mordred's mother, and laid with Mordred so he could sire powerful heirs, and so her power could be anchored in the world, providing her with what she needed to anchor the Crossroads, thus creating this alternate history.) halflings are often nomadic, and their gods literally are family, and sometimes can be found just traveling with groups of halflings. They are the most prolific travelers between worlds, and often carry news an stories with them, as well as rare goods, making them quite welcome in most places. They're also terrifying to try and attack, which helps keep them safe.
In my Islands World game, they are oceanic/coastal nomadic fishers and pearl divers primarily, though they've spread out enough that they can be found in small numbers just about everywhere. They retain their hospitality and everything from the PHB, but with a more Mediteranean aesthetic. They also do the common fantasy nomad thing of having enclaves where the gather en masse to celebrate things and trade amongst themselves, but these enclaves are cleverly hidden such that most big folk whisper that the little ones just disapear into another world once a year.
In my FR game that is a shared world with another DM, my NPC/sometimes PC halfling rogue is from a small fishing and farm village on a river, near the sea, built largely into and below a tall hill with an old castle atop it, in Sembia. The castle isn’t really occupied, but does get used for parties and local market days.
In all cases, they’re just folks. They don’t have kings, they’ve never ruled empires (on purpose), and they make up few of histories great heroes. In fact, they tend not to buy into Great Man History, instead viewing all great works as the result of communities, not individuals.
When I have big grassroots political change happening, it’s often spearheaded by groups of halflings, and in the more early modern games I run they are some of the premiere political and social philosophers, because of their natural focus on community and social organization, but relative lack of personal ambition.