A Halfling with the Trisword will get more base damage than an Orc per conversion, unless you can get more than 1000 conversion points. Not to mention the extra potions, although you're still better off even if you quaff them as soon as they're generated. On the other hand, a Gnome with Whurrgarbl will get far less bonus damage per conversion than a Human, for any amount of conversion points. (Specifically, Gnomes would get 62.5% as much bonus damage as Humans, per conversion point.) That's probably a fair trade, since Gnomes were overpowered and Halflings underpowered, but it is kind of weird. Trisword is still a much better item than Whurrgarbl.
Now to go see if I can't pwn the new dungeon with a Trisword-wielding Halfling Transmuter.