Those are some good views about our wonderful hobbit. I have always held that hobbits are actually a combination of human, elves, and dwarves. Reasoning here follows: human since they have the rough nature that humanity shares, love of cities and other human features. The elvish component comes from their ability to throw with extreme accuracy (including most ranged weapons), and affinity towards nature. Their dwarven nature appears in the way they live in underground homes, have affinity towards gems and valuables (such as rings, jewelry, etc) . They also display the dwarven resistance toward domination from outside sources. This is quite impressive for someone who is not even four feet tall!!