Different people see halflings differently. Some are sickened by the thought that a person the size of a child is an adult and has adult interests (such as drinking and sex), others are fascinated by this idea (though they are in a minority (and I'm not talking about deviants)). Halfling culture is a transient one and they travel a lot, making great merchants as well as some types of crafts.
Unfortunately, they have gotten a reputation of stealing and general mischief in the Northrealms and Midrealms (and to some extent in the Southrealms) and are often looked upon with a suspicious eye and a hand on your purse. This reputation is probably mostly wrong and because they sometimes travel with the Travellers.
Despite this, halflings often have little problem actually melding with human society if people let themselves get to know one. They have little cultural centres in most towns and if you have a back an neck that can stand bending for a whole night (because in their own space they build for their own size), awesome fun will be had in the halfling districts of the realms. Dwarves often end up friends with halflings for many reasons.
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