Gnomes have a great and possibly surprising fondness for garden gnome statues, unless they are absolutely too tasteless for words. As the elvish offspring of dwarves and fairies, gnomes would be forgiven for feeling that most garden statues insult them, but almost the opposite is true - gnomes generally love them.
Occasionally if they feel humans have gone over the top they will play tricks, rearranging the statues in the middle of the night, say. Or stealing them away and planting them in the nearest woods, sending them off on journeys around the world and all that sort of thing that you hear about. But mostly gnomes take it as a compliment when we put gnome statues in our garden, especially knowing the mockery this usually inspires in the neighbours. Often they take it as an invitation to move in and the garden will then flourish, particularly if the statue is of stone.
Gnomes also appreciate garden gnome statues as a useful cover for their own activities. There is far less need to keep an ear out for approaching humans because if one does suddenly show up, all the gnome has to do is freeze and blend with the company.