"What do you think of the halfling, now?"
For me it is a Small step in the right direction, proportion-wise anyway. While I found the first pass at halflings to be just a bit too cartoony for my taste—which, at the time I described as "very", but they kinda grew on me—the greater issue was the proportions: their heads seemed too large, and their feet too small, especially for a race that comes packaged with a Dexterity bonus.
This second draft looks like an in-between of the first halfling draft, and the ones presented in 3rd and 4th Edition: the proportions are still off, but just enough that I think that I think I could pick them out of a lineup without a scale reference, and without seeming too off. In particular I like the ears of the first, and the generally rustic, pastoral look also helps with this association.