I was about to add many of the things posted by Esty, Eomer, and davem; but then I got distracted and they all were said for me. And then I cross posted with Lal and Bethberry who pointed out all the Hobbit's most fabulous assets, leaving me little else to say
.
However, I wanted to add that even though I love the Hobbit (and I second Child's recommendation of reading aloud!), that I've only been able to integrate it with the rest of the Legendarium by reminding myself that Bilbo is supposed to be the author. Even though Bilbo did grow and change on his journey, you can see in the early chapters of LOTR just how
hobbitish he really remained. By the time Frodo returns from his journey and writes LOTR, he's barely hobbitty at all because his adventure changed him so much.
I always remember that Bilbo, a very bumbling hobbit himself, is bringing his very very Shire-based perceptions to bear on the story and the characters.
And I like the laughing elves. They're so sad and dignified and tragic through most of the story, I'm glad that Tolkien saw fit to give them one laughing moment.
~Sophia