I hate to be an ass but half of these suggestions seem like they're from non-halflings who have no idea what the Halfling's are like. Halflings would never move to the Dwarves or Elves, or Humans, or Orcs. They may d that if there was some extreme life-threatening monster or something, but it would be a rare sight to even see that.
Len is far too large, I agree. Why some of you guys want MORE DAMN LAND is just confusing. Even so, we do have a town center by my idea, which is the Inn. I've done my fair share of talking about this to my friends but we all just agree the Inn is best than a huge burrow-town-center-thing. As for moving... maybe it would be best if Len was destroyed, and we had to move closer to spawn. That way, the halflings would carve out their own land- and make the town as big as they really need, like we did in Elysium (which worked out well, I say.)
As for the players... We could all change a little for the best. It's not 100% to anyone exactly what to do in this situation, but the only clear-cut thing is we all need to have fun- with 2 active people, or 20. I myself have been cutting back on the old-grumpy RP, as to make everyone who's new happy. It's still wonderful, but all we really are-and should be- is a community of friends.
As for the wars and what not- you all make me laugh. Nah, we don't wage wars! We conduct business differently! it's not what everyone wants- but while the orcs provide large, barbaric characters, the Druids tree-hugging characters, the Dwarves mine-loving brutes, the Halflings provide whacky fun, friendship, and exotic RP which most races are afraid to even touch. Look at us- worshipping a serial killer. Dalek has that weird cake-man which is bundles of fun. or Squid-man.
So come to the halflings for our fun- and if not, to hell with you.