Is it like a reference to something?
They’re even better with santa beards.
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Gnomes are illusionists in DnD, I guess it snowballed from there.
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Gnomes and Dwarves have the best beards, and the best wizards always have great beards.
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Because the idea of someone so small having such great power is romantic. And unlike a gnome warrior, a gnome having great magical ability is believable.
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have you see that sick new beard the gnomes have the does a scoop forward
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I think you mean Why do Gnome Everything work so well?
We are in fact the best.
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Gnomes need to be mages/wizards so they can ward off bigger people that think they are delicious snacks.
True story. 
Yes you are! Y’all are so cute!!!
The reason might be because the greatest mage in all of WoW is a gnome. That’s right, the great Millhouse Manastorm.
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Gnomes are a people of intellect and logic, arcane is a power of intellect and logic.
Gnomes just make sense as casters. I have a few. Mostly mages and a mechagnome hunter, still ranged though and he has the supervolt zapper mog for bonus points.
Illusionist/thief was the only way.
Because there’s something about the old hermit, studying in the mountains, working their craft and not engaging in society. Plus, to me, there’s something about such power coming from a small creature.
Like, this is why the small and the thin make good wizards. Tall or wide don’t cut it.
It’s just one of those things, like why Elves make good archers or assassins, or Dwarves make good Warriors.