I never pictured hobbits as being that... handsome

Yeah, it didn't match with my image of the wee folk either, but it ain't perty enough to be an elf or ugly enough to be a dwarf. I hope the hobbits haven't been made too beautiful, but even more, I'm glad that they don't look like they've been made too cute. The last thing I'd want is for the ring to be carried to Barad-dûr by a couple of brave little Ewoks.