[Child of the 7th Age]

Raynor -

The language of the quote suggests Tolkien is not only referring to Bilbo but also to the hobbit characters in the Lord of the Rings. See the words in italics:

The story and its sequel are not about 'types' or the cure of bourgeois smugness by wider experience, but about the achievements of specially graced and gifted individuals.

Note too that we are talking about “individuals” in the plural—not just a single hobbit like Bilbo.

You are definitely right that Tolkien does make frequent references to the fact that the "wheels of the world" are turned not by great lords and governors but by the seemingly small and weak. (When Tolkien speaks of the weak, he is referring as much to a character like Beren, who was not part of the counsels of the high and wise, as he is to any hobbit.) Humble, ordinary individuals did make a difference. Still, I don’t think it’s as simple as that. In many instances, Tolkien was curiously ambivalent about the attributes of so-called "representative" or ordinary hobbits, and clearly maintained that those who were connected with the Ring had been chosen for their special gifts. I hesitate to dig into this in the movies forum. It’s really an issue relating to the book and gets into questions about the nature of hobbits, especially as they are used by Tolkien to show the attributes of “ordinary men.” (footnote to the Waldman letter) If I get my act together, I may put up a thread in Books later this week.