[Orofaniel]

In this chapter, the story takes a crucial turn - the true nature of the Ring is revealed, along with its history, and Frodo's adventures begin.

For me, The Shadow of the Past is where the book really begins. I've always thought of it as the beginning of a great plot. The chapter itself has a great title, don't you think? Some way, the readers just know something exciting is about to come. It's an adventure that we are going to have a minor part in. (Only as a reader though – unfortuantly )

Guinevere- I too, find that quite fascinating.

He lived alone, as Bilbo had done: but he had a great many friends, especially among the younger hobbits (mostly descendants of the old Took) who had as children been fond of Bilbo and often in and out of Bag End. (.....)

I think this quote says a whole lot about why Bilbo was attached to younger Hobbits. First of all, the younger Hobbits liked him, I think: More or less because Bilbo probably was the one Hobbit who actually was a "bit adventures", if you see my point; he old stories about his days where he had gone on his own adventures and paths, which were very exciting for the young Hobbit lads and lasses.

Just as you stated;

I guess it was only the children that still had a sense for wonder who listened to Bilbo's tales with relish, and appreciated and admired him.

I definitely think that is the main thing. I also think that Bilbo saw his "equal" in the children somehow; they were just as adventures as him. (Or at least I am of that opinion.)

Cheers,
Orofaniel