Halflings are one of my favorite races to play. They are the plucky underdog. They band together naturally, perfect for forming a party, and are known for stubborn loyalty. Their fearless plays into plucky well - where others fear to tread they'll go for life, love, and friendship. They are the anti-edgelord.
Gnomes I used to have a hard time with as well. I taught my kids how to play, and my youngest's third character was a Forest Gnome. She read all the lore about them and then spun me this tail of this hidden settlement in the forest, so perfectly part of nature that bigguns can walk through without noticing. About their communal help, referncing things like barnraising and the like. She talked about how they weave their natural ability to do illusions into everything. Entertainment like storytelling or music is easy, but even things like when there are overdue children they put a big arrow up above the tree line pointing towards the settlement, and any other gnomes that see it do the same so the whole forest guides them home. How they talk to the animals and use them as early warning of dangers, as messengers to other gnomes, and as friends-of-the-community that they gladly feed and help adn get the same in return. Each tree or area having it's own gnome band that get together in friendly rivalry and try to out-play each other at frequent contests. As she put it "they've so darn wholesome!".
So of course, I had to twist it. In another game, exploring a new world, there is an established gnome were-leopard forest kingdom, vaguely LE. That work together, treat the birds and squirrels and everything like part of the family and have a built-in network that warns the of interlopers, etc. All the goodness, turned to a purpose opposed to the PCs. Such fun.