As much as you decry having to include the Halfling as a class, the problem is that you have to make them desirable to play and right now, it is not that. The problem is that the advantages of the Halfling are nearly all defensive -- better Armour Class and better Saving Throws barely balanced by slightly increased speed or Initiative.
One option might be to add more combative advantages in the form of weapon bonuses for preferred weaponry. This might well be too traditional a route depending upon what you want to do with hlotfp-weird-fantasy-roleplaying.