Your post mischaracterizes my post, as if I thought his opinion was wrong. Quite the opposite.
I wanted to know what
@Mistwell loved about the Halfling because, while I view the Halfling as problematic, I dont want a "solution" that ruins what he loves about the Halfling.
His point that Tolkien himself considered the Halfling (Hobbit) to be a Human is significant.
For any other race, the Halfling would simply be called a "subrace", and there would not be much concern about it.
However, for the Human race to call an other Human something other than a normal Human, is actual, reallife, racism.
So there are only two alternatives. Either make the Halfling a fully-Human "Ethnicity" who is part of normal Human diversity, or else make the Halfling more obviously nonhuman.
Either way, the Halfling is way too Human. The concept must officially be a Human or disambiguously not a Human.