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The supernatural people of Iceland were traditionally not "little" - they were "hidden" (huldufolk - hidden people). They are as big as humans, possibly bigger, and more beautiful. So elves, not hobbits.
Leif was named Lucky not because he found America, nor because he lost it again. (I think I've told this joke before...) He was called lucky because he rescued people from a shipwreck.
This is revealing of the Norse view of luck. To have good fortune has a moral dimension which is quite hard to explain.
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Out went the candle, and we were left darkling
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