That's a cute story, and it's a shame it stops so early. I see Barrow-Wight chose to avoid literally calling a hobbit "Barry" - probably a good decision.
I had to investigate the runes at the end, of course (R ^ B I Y). In the Cirth they seem to read BOMIN; in the "Dwarf-runes" of The Hobbit, it's probably RUBIX, which is quite funny, but I'm assuming the former. It's a plausible dwarf name, and has the added bonus of looking like RAB(b)IT.
hS