This is probably your best story yet. I appreciate that you neither focus entirely on dialogue or entirely on interaction as you have in your previous stories, this is a pleasant blend.
My only criticism is that your descriptions are usually incongruent. While some mundane things (such as the state of the small people) are given large amounts of detail, other things like the death of the tinies, sans one (the "alleyway grime" shtick was really nice, I enjoyed it) are written in an entirely dismissive tone.
This is a really okay story. I like it a lot.

Nice!