This chapter does point out some good qualities in Bilbo.
After all, say what you will, he had good manners
for a thief and a liar.
More later on this excellent chapter, however, it should be
noted that given Smaug's strength, ability to fly rings around
any balrog, and intelligence, his tale must have made an epic
tragedy in dragon lore (always assuming there were other lesser,
and literate, dragons around).