I'm told that two particular races, gnomes and half-orcs were deliberately excluded as player races from D&D's 4th Edition at launch. I understand the certain 'controversy' regarding half-orcs (not saying I agree with it), But I've yet to hear of anyone having a problem with gnomes- what was the reasoning behind this?
Note: This is explicitly a request for developer rationale, with citations, not other people's opinions on why gnomes were not in the PHB1.
Best Answer
The answer you are looking for is in the 372th issue of the Dragon magazine, namely the article "The Gnome, The Bad and The Ugly."
It is an article by James Wyatt, where he explains like this:
First he points out how cute and adorable gnomes are and the issues related to creating "badass gnome" as he had troubles playing such gnome in DnD and WoW respectively.
He expands this point right after by describing the creation process of gnome race for 4th edition.
This is reaction of Bill Slavicsek regarding this vision:
And James wraps up with the following words:
He further expands the need for gnomes for the Monster Manual and the workaround, but that is not relevant for your question.
To sum it up, gnomes were omitted from PHB1 because they were supposed to be a world expanding race rather than world defining one.