Orcs... were elves?

[Inziladun]

Originally Posted by Animalmother

Treebeard identified Merry and Pippin as orcs. As were hobbits, most orcs were subterranean creatures small of stature. As were hobbits, they originated in the Misty Mountains region. In THE HOBBIT, the orcs were fond of rough song, as were the hobbits. In the wilds of Misty Mountains where they were not under the discipline of a Saruman or Sauron. their social structure was based on small clans, as was that of the hobbits. Like hobbits, the orcs are omniverous.

It is indeed an interesting idea, but I don't think it likely Orcs had their origin in Hobbits.
Dwarves also had a liking for underground dwellings, so that wasn't shared only by Orcs and Hobbits.

The largest point against the idea though, is that Sauron, who had been Morgoth's prime lieutenant from almost the first, before the Orcs ever appeared, didn't seem to know much about Hobbits.

Now Sauron had never paid heed to the "Halflings", even if he had heard of them, and he did not yet know where their land lay.

Sauron's fears were much allayed when he perceived from Gollum's account that Baggins must have been a creature of the same sort.

UT The Hunt for the Ring

And I don't have FOTR with me, but didn't Gandalf remark to Frodo that Sauron "had entirely overlooked the existence of Hobbits", or something like that?

It's really difficult for me to believe that Hobbits played a part, even an unwilling one, in the making of Orcs with Sauron displaying such ignorance of them.