The Game of Many Things
The Wee Folk
Though they may personally take exception to the idea, there is a common belief that gnomes and halflings are two sides of the same coin, much like high and wood elves. Though they still attempt to insert a prybar between their two races, it is an old argument and one that several centuries of effort have not managed to win. Mostly this offense has scabbed over, but some do still take umbridge when referred to as a member of the "Wee Folk".
While both gnomes and halflings tend to avoid war and violent conflict when possible, neither of them shy from it when it is on their doorstep. Both races ally readily with most others, though they share a special disdain for the crude and violent half orcs and the holier-than-thou high elves.
Beauty in the Making…
Gnomes, tending towards tinkering and creation, find great friends among the dwarves and the two trade ideas and inventions freely and with a ready ease that made gnomes an invaluable ally during the Underwar. Found mostly in Migduar and Bala'Straal, gnomes have a reputation for being excellent odd-job craftsmen, and look upon mechanical challenges with glee.
However, they can, at times, be serious and strangely philosophical about their work. Gnomes view belonging and ownership as two different concepts. A dwarven axe may be owned by the person who bought it, but it truly belongs to the dwarf who crafted it. They feel that created items have a soul, a tiny fragment of their creator in them, and this applies in varying degrees to all handmade things.
Life is a Party…
Halflings, on the other hand, tend towards joviality and a love of fun. Often their desire to be the life of the party leads halflings to become bards or other entertainers, and you will find them wherever a party may be had. They have quick tempers that flare up easily, but their easygoing personalities tend to calm them just as quickly. Halflings find great friends in the wood elves, who have great stories and interesting trinkets to share and trade.
Where gnomes believe in the endurance of life through the things one creates, halflings see life as a fleeting adventure. Why be serious and miserable when there is so much to enjoy in the world? They are quick with a joke to ease tense situations and just as quick to laugh at the jokes of others.