Heh.  In any case, the point being, people regularly don't really conceptualize just how small Small is.  Just to use a good example, an Eagle is a small animal.  Now, sure, an eagle is a bloody big bird, but, it's really not very big compared to a fully grown human.  I think people picture Gimli as small.  He's really, really not.  See, even the Hobbits in the movies:
are WAYYY bigger than a D&D halfling.  Look at Bilbo there.  ((This was what I found after a 30 second Google image search - I'm sure there are better examples).  But Sir Ian here is 6 feet tall.  That hobbit is over four feet.  Bilbo is a freaking GIANT halfling.  He should be, by D&D stats, about a foot shorter.  The top of his head should be below Gandalf's belt line.  In D&D terms, Beorn is medium, and that would make Bilbo about the right relative size.
Actually, this image from Wikipedia:
Shows it even better.  All the Hobbits, in D&D terms, are medium.  Note, they're barely shorter than Gimli who's supposed to be 5 feet in D&D terms.  The Hobbits, again, in D&D, are about a foot shorter than they are pictured here.  Small is REALLY small.