Hypersmurf said:
Well, in 3E, halfling rogues were proficient with "Medium" shortswords (ie the default PHB shortsword, 1d6 damage), but not with "halfling greatswords".
-Hyp.
Very true, but the halfling couldn't finesse the shortsword (it was the same size category as him - small). He could only finesse tiny weapons, such as daggers. In 3.5e, halfling rogues have better weapons available to them, if you take weapon finesse into account (since just about every halfling rogue races to get weapon finesse if they ever plan on being useful in melee). Previously, the "default" finessed melee weapon for halfling rogues was the dagger (because it's size was tiny, making it a light weapon for halflings). If you spent a feat, you could be proficient in the kukri and have a better threat range.
Now a halfling rogue has a much larger selection of weapons he can finesse, including all the small light weapons and (most importantly) the small rapier (which at 1d4/18-20/x2/finesse compares very favorably against the 3.0e shortsword 1d6/19-20/x2/no finesse possible for halfling). It is basically as good as a kukri was for a 3.0e halfling rogue, only without needing to spend a feat for an exotic weapon proficiency. Besides, most of a halfling rogues damage comes from sneak attack dice, so the ability to finesse the rapier (and thus connect to deliver those sneak attack dice of damage) makes a huge difference.
If you really want a 1d6 damage weapon, the small heavy mace or small morning star will do nicely (especially the latter, since the dual damage types (bludgeon and piercing) is great for defeating DR in 3.5, which makes up for the weaker threat range).