I do Halflings as Hobbits. They live in small cottages and shires that cover their island home country in villages and the occasional town, with dirt roads between them that are patrolled and kept as reasonably safe as they can be. They are affectionate homeloving people with a taste for the small pleasures of life, who live in idyllic country life, democratically elect mayors and sheriffs to lead them, and are more technological then the rest of the setting, having access to weather balloons, steamships, pocket watches and the like [no guns].
The country is led by a Prime Minister who holds most of the political power in the country, making most of the day to day decisions, while the official head of state is an Elven Lord. Their entire country was once a province of an elven kingdom, but that kingdom fell long ago. The halflings retain the monarch for cultural reasons, and because it deters potential invaders [the successor states of that elven kingdom could be prompted to war over their 'colonial possession' if halfling country is ever attacked]. They keep fire beetles as pets instead of dogs and cats, and like the rest of the world prehistoric animals are somewhat common. On a clear night you can see biologically inaccurate plesiosaurs craning like swans far off at sea.
They are also very organized, and like their little society a lot. Any attempt at disrupting it will prompt the halflings to action, calling town meetings, gathering the sheriff, the mayors, and who knows who else together to discuss the best way of dealing with the problem. Usually the answer is magic or assassination. Its not like quite stepford smiler, but they are serious about this sort of thing.
Their capital is similiar to Vivec from Morrowind, if it were built by Bilbo Baggins, being a series of massive artificial hills raised right next to each other, and hollowed out, with doors and windows, and rope or wooden bridges crossing between them at various levels.
