So I was browsing around inhabitat.com the other day and I happened to stumble across this:
Looks like hobbit holes, right?

Of course most hobbits, except perhaps Sam, wouldn't be happy to have their neighbours so close, but this photo could have been theoretically possible in M-e.
By the way, if you're wondering what this actually is, it's a hotel in the Netherlands made out of salvaged wine casks.
You can read more on this cool idea at
http://www.inhabitat.com/2009/01/14/...ne-cask-hotel/
Btw, just thought that this would be a wine barrel that Bilbo and the dwarves would actually like to be in.
EDIT: Feel free to move this to Mirth, if it doesn't fit that well in here.