Heh... Halflings... Sorry, but dwarves beat them hands-down.
The +2 bonus to throw daggers would be nice, if daggers thrown by something with -2 strength were actually something to be feared... It is a nice bonus to hit for a sneak-attacking halfling rogue, but it's not about to carry the class.
The +1 to hit and +1 AC are, unarguably, very nice - pretty much the only good thing about the race. Although the bonuses against orcs/goblins and giants are nothing to scoff at either, in most D&D games.
As far as saves go - dwarves get +2 to saves vs. spells and vs. poison - that leaves out what, exactly - reflex saves versus traps? The +1 to all saves doesn't even come close.
Stat adjustments: +2 CON, -2 CHA vs. +2 DEX vs. -2 STR? Let's see... A bonus to a vitally important stat for any class and a penalty to a dump stat (yes, a dump stat... a good DM can make CHA more relevant, but it still lags behind) vs. A penalty to an extremely important stat for any class that fights in melee and a bonus to a stat that's only very important for rogues and monks. I don't think this is even remotely close.
Encumberance penalties - Halflings get their carry weight reduced because of their small size - combined with the -2 to strength, this really starts to hurt very quickly... Halfling armor does weigh 1/2 as much as normal, but everything else - weapons, gear, potions - weighs the same... Welcome to a base speed of 15 feet if you're not really careful... Well, that's ok, that huge +2 bonus to jump checks will take care of that...
Inability to use the best weapons in the game - sorry, but a halfling fighter is beating no one without being able to use a greatsword, greataxe , spiked chain, longbow, and most polearms, only being able to use the bastard sword or dwarven great axe two-handed at the cost of a feat, and being reduced to weapons that do 1d6 damage if he wants to use a shield.
And, to top it all off, drakvision vs. low-light vision - the main selling-point of the dwarves, all their other great abilities aside.
As for humans, I think they're firmly in the #2 spot, perhaps even close to being tied for #1 - their flexibility and lack of weaknesses do make them an excellent choice this time around.
Edit: Damn, some people and their short, poorly supported viewpoints... Those weren't there when I started my essay!
Dwarves make poor wizards and clerics? They make some of the best wizards! CON is the second most important stat to a wizard... As for clerics, they easily hold their own against any other race - all the advantages that make them great as fighter still hold true for them as clerics, the +2 to saves vs. spells combined with +2 CON and two good saves makes them amazingly sturdy, and the -2 CHA hurts them only a little when it comes to turning - the turning table is pretty forgiving.
Oh, and running away - they're hardly the worst off... Because of their higher carry capacity, they'll actually usually be better off than a gnome, and certainly better off than a halfling - assuming we're not being silly and comparing a dwarven fighter in heavy armor and a halfling rogue, or something.
Finally, I forgot to say - I actually prefer humans or elves to dwarves for my characters... I just happen to think that, mechanically, they're easily the best.