The Razor's Edge
The Gnomes in The Razor’s Edge campaign are distantly related to the Dwarven race. They are not Fey / Faerie creatures. Basically, the AD&D Gnomes are the Gnomes that populate this world.
If someone is going to play a Gnome as a PC, we will need to review their powers, feats, etc. to make sure that they work with this version of the Gnome.
There isn’t a large population of Gnomes in this world, but there is no reason to believe their race as a whole is in decline, but instead holding steady.