In the Lord of the Rings, Gandalf sums up the hobbits in one sentimental quote: “Hobbits really are amazing creatures. You can learn all there is to know about their ways in a month, and yet after a year they can still surprise you.”
It is one of the truest sentiments about these extraordinary beings that Tolkien ever wrote. Many people in Middle Earth have all but forgotten that Hobbits exist. Their living has become a peaceful and secluded countryside existence, far away from the wars and the politics and the great kingdoms of the other realms who share their world. But hobbits are actually the strongest warriors in Middle Earth. It's not only due to their resistence to the One Ring, and their love of gardening over power, but because of their true strength of character and loyalty of heart. In fact, many of the major quests throughout Middle Earth’s history would have failed if not for a hobbit being present.
This is something that the recent Rings of Power series only helped to reinforce, showing the bravery and tenacity of the Harfoots in the face of a world that is changing too quickly for them to adapt. The Harfoots are, of course, precursors to Hobbits. They are an ancient ancestor of sorts, but they still help to determine the fate of the world in many significant ways. It is Nori who guides the wizard to a path of goodness when the three sorcerers mistake him for Sauron. It is Sadoc who gives his life to help defeat them when they threaten to steal the wizard and use his powers for their own terrible designs. Season 2 is yet to reveal what awaits the heroes in Rhun, but it is safe to say that the Istari has the best chances of success because he has a hobbit at his side.
This is demonstrated countless times throughout the Third Age, especially where the Baggins family are concerned. That is why Gandalf stresses so much, to all who will listen, the importance of these small beings in setting the world to right against all the evil that has been committed. Many at first seem reluctant to believe that such seemingly insignificant — some might even say ignorant — beings would be able to change the course of the future. But that is why, when it comes time to reclaim Erebor, Gandalf chooses Bilbo for the quest, despite Thorin being against it. The gray wizard can see something within the hobbits that no one else seems to be able to recognize until they prove themselves over and over again in the face of danger. Despite the dwarves being adamant that a better burglar should have been chosen, Bilbo is the most loyal, resilient, and clever companion, even before he finds the One Ring and uses it to his advantage.
Having a hobbit on the team is vital to the success of the quest for many reasons. One is that Smaug is accustomed to the smell of dwarf, and is already expecting Oakenshild to try to reclaim the mountain. Having the scent of something he has never encountered before throws him, and gives Bilbo the vital time that he needs to recover the Arkenstone. But beyond this lies a second and more important reason. There are shared skills among all hobbits that both Frodo and Bilbo use on their quests. They can move extremely quietly, fit into small spaces, and can make themselves hardly seen (even without the Ring). These talents add to their irreplaceability in the important matters of the world.
The same can be said of the Hobbits in the Lord of the Rings. Possibly the most important among them is Samwise Gamgee, who has better survival skills than the other hobbits, which already makes him a useful companion. But then, he has a heart of gold and the true strength of a hero to match. The One Ring never would have been destroyed if not for Frodo and Sam (and undeniably Gollum too), It is a task that was singularly impossible to achieve and certainly wouldn’t have been accomplished by an elf, a man, or a dwarf, nor a combination of the three. In these important quests that decide the precarious fate of the world, hobbits are worth an army of bigger, more trained, braver soldiers. Without them, Sauron would surely have achieved his total dominion of Middle Earth.
Many of the most important battles of the Third Age were won with the help of Hobbits. One example is the battle for Minas Tirith, during which Pippin saved Faramir and prevented Denethor from ruining Gondor altogether. Another is the Battle at Pelinnor fields, at which Merry’s sword was the missing key to destroying the Witch-King, a defeat that turned the tides for the battle and probably for the whole war. These small beings bring victory wherever they go, and somehow seem able to prevent major disasters that would have created a very different outcome in the worst moments.
Perhaps if some of the earlier events of Middle Earth’s history, like the Battle of the Last Alliance had had the presence of a hobbit, there wouldn’t have been so many tragedies and terrible deaths, including Elendil and Gil-Galad. Perhaps if the hobbits had been companions accompanying Isildur across the river Anduin, the One Ring wouldn’t have survived and been lost for so many years. It seems that these brave, pure-hearted beings are essential for good to prevail in Middle Earth.