I don't think anyone mentioned woodcarving yet? (please forgive me if I'm mistaken) It's something both practical and a form of art; like pottery. I bet you hobbits had some ornate furniture, and if I remember correctly Elrond's cieling had some nice decorative wood, the way Frodo describes it when he wakes up in Rivendell.
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You passed from under darkened dome, you enter now the secret land. - Take me to Finrod's fabled home!... ~ Finrod: The Rock Opera
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