I suspect there's a point under all this but I don't have any confidence I've understood it. I get goblins are bad but are gnomes good or not? Where's the halfl

I suspect there's a point under all this but I don't have any confidence I've understood it. I get goblins are bad but are gnomes good or not? Where's the halflings and kobolds? I advocate "dragon mode". Find a defensible place, keeps what's precious to you there; burn the solicitors and anyone who looks tasty.