Well that's the point
Elves and halflings are distinct.
My point is the distinction is small [...]
One lives the better part of a millenia, meditates 4 hours instead of sleeping 8 (and is immune to magic sleep), has unearthly grace, and darkvision.
The other has a bit over human lifespan, is small and agile, has uncanny luck, and normal vision.
Those are small distinctions?