Game assumes Medieval Feudalism
Medieval Feudalism ishow most of the game's lore and rules work
Game plucks halflings out of Medieval Feudalism
Game waits 3+ years explain how halflings work outside of Medieval Feudalism with a different reason every other time.
Rinse and repeat
I want D&D to stop doing that.
I disagree with the blanket assumption of medieval feudalism. But even if that is the assumption, I don't see why there's any conflict. They live in some duchy? They pay taxes like everyone else in exchange for protection and services.
This seems to be once again the weird "halflings never pay taxes" theory. I don't know where it comes from.