I have no need for gnomes in the least. However, this little bit has drawn my attention favorably. Well done! My biggest issue is that they are too similar to either halflings or dwarves, and I prefer the different races to be strongly themed. I am following the thread with interest, and look forward to someone changing my mind!In the ancient mythical times when snakes had legs and thunder hadn't learned to chase lightning yet, Garl Glittergold sat in a cave with some gemstones, and told jokes.
He told jokes so funny for so long that the gemstones started to laugh, and once they'd started to laugh they learned they liked it, and became gnomes, and the Forgotten Folk have followed Garl and his family ever since, learning to smith and tinker from Nebelung and mining from Flandal Steelskin, to create traps and illusions and defend their homes from interlopers from Baravar Cloakshadow, and many lessons from many other gods besides.
Also in my headcannon, gnome babies don't cry when they're born, they laugh, and their first baby name is based on what gemstone their eyes resemble most.