I agree that the weapon size change was a bad idea. It's the one thing that has really stuck in my craw.
D&D may not be strictly based on LotR, but there's definitely an influence. The famous magic item Sting was an elvish dagger that was wielded by both Bilbo and Frodo as a light weapon (small for them). And I just don't think they got a -2 when using it.
Rather than change the system (which was a basic d20 mechanic), they could have just introduced things like small longswords into the equipment section:
Small martial weapon, halfling longsword, 1d6, 19-20/x2, slashing
D&D may not be strictly based on LotR, but there's definitely an influence. The famous magic item Sting was an elvish dagger that was wielded by both Bilbo and Frodo as a light weapon (small for them). And I just don't think they got a -2 when using it.
Rather than change the system (which was a basic d20 mechanic), they could have just introduced things like small longswords into the equipment section:
Small martial weapon, halfling longsword, 1d6, 19-20/x2, slashing