I don't think they need politics or a formal role in the broader society or a creation story. (But I do count their "discovery" by Yondalla as a kind of a creation story. The story is that their creation is a mystery even to the Gods.) In other words, they don't have to be an entire race of diplomats or merchants or house sprites or whatever (though I don't necessarily have an argument with anyone else wanting their halflings to be those things). BUT That is not to say that individual halflings can't do those things. I think it's charming and interesting that like I said in another post, "they are just part of the scenery." No one much thinks about where they came from or what they're doing there, they just are and seem like they always have been.A valuable niche of being commoners.... just like every other race has.
This is the thing I don't get. The "they are just everyday folk" argument seems to think that no other race includes any commoners at all. You realize EVERY "pure" race (as in not the planetouched) has commoners right?
Also, no one is asking for a halfling kingdom. But a broader role in society... yeah, they do kind of need that. Right now they are basically invisible as far as anyone world-building with them is concerned. And you guys love that, I get that. But... you can still have invisible halfling commoners alongside a section of halfling lore that hooks into the wider world.
Because right now... they are contributing nothing to the common good. And in a world with as many threats as DnD has, that is bizarre.
In the game I'm playing in now, my halfling character does have a background of being from a merchant family. He is from a village in Amn (Amn is an area of Faerun with a large halfling population and has a reputation as kind of the bread basket of the world). His father is a successful barley farmer and brewer, not because he had any ambition to be a business man, but because he just happened to be really good at it and he found a small plot of land in a fertile river valley that happened to have a really great terroir for barley. (He got lucky! And probably Sheela was smiling down on him as well.) He produces as much as he can because he knows people appreciate his product, but it's still just a small family operation. The family's brand of strong ale has become a highly sought-after luxury across Amn.
So... not political, not ruled by ambition, he just carved out a nook for himself and is enjoying his life. He has the support of the country where he resides because they know that without him they'd lose a valuable, regional resource.
Could this role be filled by a human farmer? Sure, but I don't think it would have the same feel. And this is just dealing with my character's family's background. It doesn't really get into his motivation for adventuring and his story moving forward, which I won't get into here, but I think that that part of his story is also well-suited to an unassuming, underdog, indefatigable, brave, but reluctant hero.