These guys are perfect for getting a full set of low lvl armor when you are lvl 1 without spending a copper. I got a full set of cloth armor for my lvl 1 enchanter in 7 kills. They also drop other interesting loot like whiskey flasks.
Because there are a bunch more leprechauns above lvl 1, and a yellow attacking you while you're trying to kill an orange to ruin your day pretty quickly. A friend of mine is ultra-hated by these little guys, and they would run from hundreds of feet away to attack him. And since I was grouped with him for a little while, now I need to find a way to raise this as well.