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Khazad-Dum, I completely forgot Dwarves! If not for the Balrog, I'm sure it must have rivalled all other places in beauty and security (having a hidden western doorway, too). I think I'll extend what I think as the fairest realm in all the land to the Moria/Lorien region. Imagine, right next door to this enchanted elven forest is this great underground city-fortress!
As for the fairest realm of the First Age, I suppose that Gondolin might be tied with Doriath. Mormegil has convinced me.
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