I've always liked the old hair-footed hobbits. It gave them some phsyical identifiers besides for their height. I'm usually the GM, however, and one of my players loves the new halflings. He always makes them Irish, too. We tend to not oficially declare one design or another. For us, it depends on the player and what they want to play. NPCs are the same way. Kind of like two different sub-races (hairfoot and tallfellows, for instance).
And I liked the gnomes with big noses and pointed ears. Not the big eyes and wild eyebrows.
Edit: I'm tempted to drop both in the next campaign or use forest gnomes as the standard gnome (and not a 'standard' PC race), and something of a mix between gnomes and halflings for the standard 'little guy' just to move away from the controversy.