Nope. You'll find that the options for gnomes and halflings are limited when it comes to one handed weapons.
Of course, they make up for it in other areas (second chance is a life saver, DEX/CHA is a great striker combo, INT/CHA + invisibility allows you to set up a hit, etc) but that's the topic for another day.
If you want to use a 1d8 weapon one handed as a small creature, you've basically got the scimitar and the scourge (flail weapon from Adv. Vault). Spent a feat for the rapier, and you have a 1d8 light blade with a +3 prof bonus. It's worth it if you want to make certain characters (gnome swordmage, any rogue, halfling paladin).
Otherwise, you're going the two handed route. Note that this isn't entirely a bad thing if you're a non warden defender or a barbarian. You can also spend a feat on the waraxe to get a 1d12 2 handed weapon for a small character, or use the bastard sword for the +3 bonus. 2 handed swordmages will do this (though most I've seen go 1 handed to get the higher warding bonus).
Think of it this way: yes, the proficiency bonus stinks, but small characters get really good bonuses to some powers that other classes WISH they could have. A halfling can negate a critical hit! That's huge. A gnome is basically guaranteed combat advantage with the fade away power...what a great way of making sure your daily connects.