I would draw it as a land of self deception.
Industrious little good hearted dummies live in small tribal groups and spend their short lives mining, growing fungi and mosses, farming rats, brewing mud ale in miasmic pools, making simple tools from driftwood, sharp rocks, and sinew, collecting pet pebbles, paying tribute to the elders who pay the taxes, and always trying to get a good deal out of anyone who comes along.
There might be some larger settlements with some expansive mine systems beneath and a feudal aristocracy ruling with some semblance of order, ultimately worshiping the big bad dragonlords who seem to dominate every aspect of life with cruel and harsh rule (but the few remaining dragons merely enjoy being fed and don't care much about the going ons of the little critters).
But behind this facade of neutrality and obedience, every Kobold knows he can get an edge for himself. As long as he can maintain an image of innocence he will lie, steal, and kill if there's something shiny in it for him. This is why they are rarely found alone or in pairs, crowds have eyes and provide security.
A band of Kobolds will be friendly, if reserved, and a powerful ally if treated nicely. But they will cut your throat while you're sleeping.
Just imagine a horde of Gollums, edit in some Galaxy Quest child-aliens, and top it off with a little cutebold.