I'll have Hobbits after the Advanced Player's Guide puts them back in. I'll make them a separate race from Halfling.
I don't know much about the APG, but isn't it going to follow the 3E conventions, which means 3E-style halflings?
In my 21 years of DMing, Halflings/Hobbits have never been in any of my campaigns.
I would only use them in a Middle-Earth campaign, or in Dark Sun, because they are so important to both of those settings.