Midgets and dwarfs/dwarves (whichever, I don't really care; I was originally taught that one was Brit and the other American, and the only diff was spelling, so ..) are valid biological definitions, though.

Little People are imaginary beings.

And as I said before, White Wolf could have saved itself a lot of grief with the Gypsy thing by simply saying that gypsies are made-up creatures, and don't exist irl.