When I said I was hoping for insanity-inducing artwork, I was not expecting this.
In all seriousness I am not sure where I stand. While they do look friendly, folksy, and cute, the large head and tiny feet also makes them look top-heavy, like they would have a difficult time staying upright (which contrasts with their Dexterity bonus). They also look very cartoon-y, like something you would expect from a Disney or Pixar flick. While not inherently bad on its own, it might contrast poorly with the overall look of D&D.
|Seriously, I can imagine a "Pixar presents" caption.|
From head to waist they look fine, though the broad face and large nose makes me think of gnomes. Really the main thing that seems off are the tiny feet. I would bulk up the legs, maybe reduce the head a bit, and then see what people think.