My taste in halfling appearance leans much more towards Lidda and the illustration from PHB2 that Zamkaizer posted. As a Monte Cook fan, I tend to go with the idea presented in Ptolus that halfings are just a subrace of elves anyway, the saelas faen (which he latter spun out into the faen races of Arcana Evolved).
Of all the halfling changes, I think the one that I like the least is that halflings are riverfolk while humans are associated with the plains. Sure, humans have gotten a lot of use out of horses, but most of our cities are on rivers or sea shores where we can use boats for trade, fishing, and dumping our waste. The Nile, the Thames, the Ganges, the Yangtze, and the Hudson are all rivers which have fed some of the world's most influential real-world cities, and I can't imagine fantasy humans not doing the same. Halflings might very well thrive trading with humans down the river, but I think they would be much better suited to living in wild places, using their size to sneak about and living in small burrows or hollow trees with entrances that can be easily defended from mundane predators. Whether you live in a castle or treehouse, burrow or dwarven hold, if a dragon wants to tear open your house and eat you, it will, but most of these will keep you safe from wolves.
Robert "Gotta Go" Ranting