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I feel like all of those people posting nothing have not really read the OP properly at all and just assumed they want the goblins to be scrungly gremlins instead of anime waifu green elves, when in reality what they are asking for is the more modern conventionally attractive "shortstack" goblin.
Judging by the examples they provided especially: (Just bear in mind this will probably all be ecchi at least)
Lines Sensei - https://www.newgrounds.com/art/view/lineslines/countertop-stack
Very par for the course I would say as far as the trend goes for Goblins now. To be honest if they didn't have drawing timelapses on their youtube channel, I would feel like this was partially AI but it's real enough - https://www.youtube.com/watch?v=Un8xi9jRsZA - and they actually have a tutorial video about limb shaping for shortstacks.
iWILLbuckYOU - https://x.com/iWILLbuckYOU/status/1703090029776802190
In their setting the goblins are a lot more wild or tribal and still have a little bit of monster-y traits like the spiked teeth and unique eyes but the body proportions still speak for themselves really.
Blizzard, so World of Warcraft I guess - https://static.wikia.nocookie.net/wowpedia/images/d/d8/Goblin_heritage_armor.jpg
Probably the weakest example here imo but also this Goblin rep is nearly 13 years old now, that's when they were updated in appearance as a playable race at least, much older than the shortstack trend that has adopted them. I've always been of the opinion that WoW has a strange thing going on in its art style especially for faces. Here we see male Goblins fulfil the stereotype gremlin monster type look while females dimorphically look more human in the face, or I guess reminiscent of how the female Gnomes look relative to the more caricature wizard/mad scientist male Gnomes, who had been playable since the game came out. They're not really my thing, but mostly because I just find the faces a bit uncanny, they're definitely not ugly (but I would always be a proponent for males being able to look softer/cuter and females being able to look rougher/monster-y).
Honey Goblin (Vtuber) - https://www.youtube.com/@honey_goblin/ or maybe better this one https://x.com/honey_goblin
This is a pretty alright goblin to me, not particularly a shortstack but that's ok. Really if anything the game's current model is not too distant from Honey's design, they'd just need to squish the head shape so it's shorter and wider, make the eyes and ears larger.
Amidst looking these up I ended up skimming through the game's official Twitter account and it's kinda disappointing how much of the art- aside from much of it look like it was AI generated and then traced and altered- is just elves but green, and the male elf is even stranger imo since he's just very a plainly masculine guy with the long pointy ears. It just screams AI-generated anime girl and prefab designs. I know this is pretty harsh criticism for a (presumably proof of concept) game that's actually only just about to have a kickstarter campaign begin a few days but like, if you don't point out something you feel strong dissonance over as feedback to the devs, then they don't have the feedback to consider doing something about.
In their first news post here on Steam mentioning the Kickstarter campaign being readied for now, and the demo they released in the June Steam Next Fest they have a picture of the Kickstarter listing and they have some chibi drawings on it that are actually really cute and I honestly believe if the character models could be more like those proportions it would be really great looking for it.
https://steamcommunity.com/games/2748340/announcements/detail/4207000361148677127
I'm going to stop building this tower of text now, since I don't expect anyone passing buy to pay attention to most or any of it. The TL;DR is that none of the examples are ugly gremlins and it feels like out of the dozens of people who joined this thread to say something, or nothing much, only a small few including myself actually get what OP was talking about.
I just wonder what you mean by "accurate fairy"? lmao. I am as much a fan of fairies and pixies as I am a fan of the modern shortstack Goblin stereotype, but I don't like Elvish, faefolk or nature-y treehugger ♥♥♥♥. I like an interpretation that Pixies, contrasting to nature-loving Fairies, are instead very into artifice magic for engineering and mechanistry, aside from also being prank masters. But anyway, I don't know if anyone could really claim any design of a fairy as accurate, considering a lot of these folklore creatures are all really the same thing by many different names. The Wikipedia article for Fairy has its main image as an 1888 painting they call a "modern depiction" but it's just a naked, conventionally attractive woman wrapped in sheer cloth (as in, almost transparent) and she has large butterfly wings. So I think Tinkerbell might just get away with it, right?
Sometimes "fairy" was actually used to refer to all of these faefolk creatures, Goblins and Gnomes were included in that. Even "kobold" was one of those names for these miniature, mischievous peoples, where Kobolds nowadays, thanks to D&D mostly I believe, are generally the equivalent to Goblins for the Dragonborn and/or Lizardfolk type races, tiny lizard/dragon people. They also get collected up in the middle of the venn diagram - "generic, tiny, hoard enemies, remorselessly cannon fodder" + "they're actually cute and increasingly depicted as shortstacks rather than gremlins".
The Imp race in particular can easily be customised to look like a Goblin, the game also has a Kobold race. The Imp race itself is very clearly inspired by Midna as it is. Very based aesthetics all around. There's a demo on their itch.io page https://kiseff.itch.io/atlyss
Like "lol the stinky gobbos are actually waifus / husbandos!"
It's trope subversion.
Which lore?