I share Child's view with respect to the canon. JRRT purposefully left many origins obscure because the histories were written by Elves and Men (and Hobbits) who were never shown all the facts, and often held irrational prejudices. If one were to trace a 'true' mythological history of the Hobbits, I think it would be more true to the flavor of the Legendarium to place them apart from Men, Elves, Dwarves, and all others in origin, because of their eventual role in the ending of the Third Age. The central story of the Fellowship in the LotR is one not only of companions in a quest, but of all the races coming together (in miniature) to fight the common Enemy. We have a Dwarf, an Elf, a Maiar, and Men. Surely, the prominent position of the Halflings among them deserves a more dignified origin than 'short humans'. JRRT didn't write of their origins explicitly, but then he didn't write explicitly of Man's emergence, either.
If I were asked what the origin of the Hobbits should be, I would put it something like this: After the downfall of Numenor, one amongst the Valar, presumably Yavanna (or perhaps Vana, the "queen of flowers"), is so distraught at the destruction of Middle-earth by Men and Elves that she asks Manwe permission to create a race whose sole purpose would be to care for the living things of their world. Manwe, knowing the consequences of the misjudgement of Aule in creating the Dwarves, councils against it, but Eru changes his heart. She is allowed to bring them to life, but with the understanding that they would be the weakest race, afraid of interactions with others and utterly helpless in the face of battle, yet that this would be coupled with an inner strength against corruption of evil. Possibly, she might be given the cryptic promise that their fate would be to stand alone against that evil when all others prove unable to resist it.
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