Hmmm. Seems to me there is one more influence on the halfling design than what was mentioned by my esteemed colleague Qefnir:
The Lone Ranger!
Jeeeze. Someone please tell what this is about. I near about pee all over myself every time I go through that part of the world, just seeing those halflings with the masks.

Acinonyx of Bristlebane
*
* And because I see no evidence of the definition of the Halfling race in EQ it's safe to assume they are either Middle-Earth-style or TSR-style