Just a quick link to a previous thread on this discovery:
We Have Hobbit Ancestors
And one in Mirth:
Existence of Hobbits Discovered.
A settlement of similarly diminutive people has subsequently been discovered in the Ural Mountains, (I think it was in the Urals, I can't find the article now.) that was contemporaneous with these individuals on the island of Flores.
It's good to see people are still discussing this.