Look, I can understand why you might be angry. I can understand being resistant to change. I cannot understand your denial of what is happening. If you were truly active, this would not be happening. I've been to the Halfling village in RP and OOC before and there were 0 people there. Why would anyone want to wait around for someone to RP with? Here's what happens: Person shows up and no one is there, said person leaves to go RP somewhere else, still no one is there, rinse repeat. You are being heavily assisted by the GMs to improve your activity by putting you near a nation. Why does this boost activity, you may ask? Well, you are now closer to a location with budding RP that can rub off onto your settlement. New players will see Halflings as a viable race for activity purposes because if they get bored they can travel a small distance to check out another place for RP. There are many benefits of being near a Nation. I don't know if you remember your first week of LotC, but I do. I remember flocking to the nearest place of RP and trying to have fun. It was really difficult for me and if I was playing a Halfling, I would have quit. Who wants to sit alone? I would much rather be near a Nation.
Now, moving onto what I've heard about Skype chats. I've heard that the Halflings were heavily modshopping, pulling GMs in and out of their chat, verbally abusing them, and kicking them shortly after or before they had a chance to respond. IF THIS IS TRUE, do you really think that it will help your case? This only makes the GMs upset and less willing to listen to you. It's immature for your group to do something like this.
How are you being torn apart? If anything, your anger should pull you together. For example, if all the employees hate the boss (which it seems like is a rather viable example for you), then they all get together and gossip about the boss. Anger pulls groups together and empty threats about quitting the server not only makes it hard to take you seriously, but it also doesn't help your activity.
I'm honestly so very confused why you think this is a bad thing happening to the Halflings. If I were you, and I felt the same way as you did, I would be all over it for trying to prove that my group was actually active and to prove the GMs wrong. Instead of getting on the forums to cry and whine and point fingers, I would playing my character in game.