For my part, recognizing that I prefer to fold halflings and gnomes together into a combined "hinnfolk" race:
This works really well for Forest Gnomes, but the Rock Gnomes of traditional D&D don't do this (they're much more like Dwarves).
I'd kill the gnomes and divide their stuff among halflings and dwarves. Halflings can get hippy animal friendship stuff and dwarves can get the tinkering. I think dwarves in particular would benefit from this; they're conceptually very narrow.
I agree, where there are three, there should probably be two.
• The Dwarf/Gnome gets the Elemental Earth, Wilderness, and Magi-Tech flavor.
• The Halfling/Gnome gets the Home, Farm Animals, and Non-Ambitious Carefree flavor.
I like the Gnome, so I want to see it remain. But I am ok with reorganizing its character concepts elsewhere. Because I like the Gnome, it didnt occur to me for it to be the one that splits up. Yet this seems like a fruitful exploration.
Currently, in the Playtest Origins:
Gnome
(Playtest has two Gnome "lineages".)
Rock Gnome ≈ Tinker Gnome = Dwarf + Gnome
Forest Gnome ≈ "Farm" Gnome (with animal livestock) = Halfling + Gnome
Halfling = Lightfoot Halfling ≈ Farm "Luck" Halfling
(Playtest only has one kind of Halfling. But 2014 actually says the Stout have "dwarven blood", namely are a Half-Race sotospeak.)
• Stout = Halfling-Dwarf multispecies
• Tallfellow = "Urban Nomad" Halfling-Human-Elf multispecies
Dwarf = Elemental Earth + "Tinker" (Toolsets)
(Playtest only has one kind of Dwarf.)
Reorganization:
Dwarf = Elemental Earth + Tinker/Rock Gnome
Halfling = Luck + Brave + Nonambition + Home + Farm/Forest Animals
It is a clean conceptual split.
• Halfling is a nickname for the "house sprite" "gnome" of various reallife folkbelief (hob, brownie, tomte, kobold, etcetera).
• The Dwarf pretty much stays the Dwarf, but its magitech becomes more apparent.
Meanwhile, the "Stout" is actually a nickname for a mixed-ancestry Dwarf-Halfling multispecies (half race) person, the "Tallfellow" a nickname for a Halfling-Human multispecies, and a "Mul" a nickname for a Dwarf-Human multispecies. Note, some Tallfellows derive from Halfling citizens of cities founded by Human-and-Elf, thus also have some elven blood as well as human. In some regions, Tallfellows tend to be urban nomads, travelling seasonally from town to town, by wagon or boat.
A note on the Dwarf Tinker. I like the concept, but am less happy with the mechanics that the Playtest Origins lists. There, the Dwarf Forgewise is strictly a learnable toolset proficiency and the Gnome Rock is strictly two learnable cantrips. Instead of both, I would rather say, the Forgewise/Tinker trait is:
Forgewise Tinker. You exhibit innate affinity with creating works of elemental Earth. You have an Advantage to any ability checks that rely on an understanding of soil, rock, crystal, metal, and terrain, such as for the Smith toolset or Jeweler toolset to craft items, the Survival skill to interpret and navigate terrains, and the Nature skill to employ the elemental properties of Earth and the structural engineering of mineral construction materials.