I have that same grin whenever I'm around guys taller than me. It's such a weird feeling. Like when you lay face down in the grass and imagine you're an ant.
Her name is Lena Headey, she played Cersei Lannister in Game of Thrones. According to some random sites on the internet, she is around 5'5'', which is equivalent to 165cm
The mountain's wife is tiny. Not a dwarf, but just small.
You think "dwarf" is offensive? What about the Dwarves from LOTR? Or the Dwarves from WoW? Or the Dwarves from OnePiece? Or the Dwarves from Norse Mythology who made Thor's hammer? Dwarves are awesome, "little people" sounds like an even worse insult than the M-word.
Try saying "little person" with the tone of voice you'd talk to a kitten meowing at you. And then say "Dwarf" like a Nordic guy.
Honestly the comparisons you made are the point. They're just people who are short, not a magical mythical race of non humans lmfao. THATS where the whole "little person" thing comes from.