The battle rages on, and on, and on. John Hawks notes that the extreme claim to have found a new, dwarf species of human is becoming more dubious. The number of respected authorities arguing that the presumed "hobbit" is actually a normal human afflicted with microcephalia is growing rapidly. [here]
Also check out this report from the BBC:
Scientists are to present new evidence that the tiny human species dubbed "The Hobbit" may not be what it seems.
The researchers say their findings strongly support an idea that the 1m- (3ft-) tall female skeleton from Indonesia is a diseased modern human.