Redo your character. Sorry, LA is generaly seldom worth it especially more than +1. And the main benefits of Svirfneblin are defensive. Anything you could do to boost your damage would work equally well (and often better) on a build that doesn't start off with such anemic offense.
Barring that, multiclass sorcerer and get the Aestheic (spelling?) Mage feat (C.Adventurer) and pump your charisma instead of wisdom, as it now determines your spellcasting AND monk abilities thanks to the feat. Or multiclass wizard and get the Kung Fu Genius (Dragon magazine) or Carmendine Monk feat (basically identical) and pump your intelligence instead of wisdom, as it now determines your spellcasting AND monk abilities thanks to the feat. In either case, work towards the Enlightened Fist prestige class (forgot the book, probably C.Arcane) and possibly Abjurant Champion (C.Mage) to boost both your fighting and casting abilities together. Your damage now comes from chaining damage spells to your fists and attacking with them. This way, it doesn't matter as much that you're small with godawful strength. Not when you're delivering a 10d8 fire damage Combust spell with that fist.
EDIT: Alternatively, redo your character as an Unarmed Swordsage (variant of the regular class, basically get monk unarmed strike and lose weapon and armor proficiencies) from Tome of Battle and rely on your strike maneuvers' bonus damage to hurt things. With 5 levels in the class, you can get Soaring Raptor Strike. It's a standard action, you make a jump check* with a DC equal to the opponent's AC. If you succeed, you can make a melee attack with a +4 bonus to hit that deals +6d6 damage. It only works on foes larger than you, which for a gnome should be almost everything. That will at least give you one powerful attack to fall back on, and lots of other maneuvers are nice, too.
*Magic Item Compendium has 600 gp Boots of Agile Leaping (or as I often do, 900 gp to tack it onto other magic boots) to help if your low str makes jump hard. You can use Dex instead of Str on jump checks. Further, if you have 5 ranks in Balance, you can stand from prone as a swift action w/o provoking an attack of opportunity, which is just generally really useful. Love that item!