In the tabletop game (AD&D 2e), gnomes can be illusionists but not generalist mages. Hence, the intelligence boost makes *some* sense.
The Eye of the Beholder games don't implement specialist mages, so no illusionist. As a result, gnomes have no arcane caster option (except maybe bard, and I'm not sure if EotB implements it; I know Dungeon Hack does), and therefore have no use for intelligence.
Hence, as a result of a decision made by SSI, gnomes have no use for their boosted attribute. They *could* have fixed this by allowing gnomes to be mages, but they didn't.
(Fortunately, 3e got rid of racial class restrictions (except for some prestige classes, which CRPGs don't usually implement), but no SSI game uses 3e.)