Typically classified as cousins to the dwarf, gnomes are weak and slow (non-agile), but wise and spiritual. Yes, they are short. Yes, they typically have beards (the males that is). And yes, they typically have big noses. They also have higher than normal mental health, as well as a good amount of resistance to magical force.
Because of the amount of time they spend underground, they also have infravision and can detect lifeforms in dark areas. Finally, they also get a movement bonus when in caves and underground.