Argyle King
Legend
Ironically, I'm of the reverse opinion when it comes to gnomes. I think they should be merged with halflings to create "hinnfolk" or whatever one wishes to call them.
Svirfneblin and "ghostwise" halflings thus merge into a singular subtype, as do forest gnomes and lightfoot halflings, giving you four options: ghostwise (deep-dwellers with psi leanings), cragstep ("rock" gnomes, enigmatic tinkerers/chemists), stoutheart (plains-dwelling herders), and lightfoot (tree-dwelling, animal-taming hunters). That gives each subtype a clear focus and thematic concept. It also ties the resulting race to a conceptual reason for their differences, with lightfoot and stoutheart being more animal-oriented, while the underground-dwelling ghostwise and cragstep ones lean toward industry and the creepy-crawlies that live at the lower boundaries of the world.
I don't see that view as being the reverse of what I said.
Tinker Gnomes and Garden Gnomes are two very different concepts. Likewise, the woodsy-elf type and the grey-fey elves were different concepts.
Breaking them into two different conceptual spaces is something I see as good. But, for me, I think having two broad categories would be fine; those two could be fine tuned with cultural choices and background choices.