Speaking of Hobbits, Bilbos threat of 9 seems crazy as well, paying three threat for his ability.
These days I only seem to use Bilbo when I play solo. He has a kind of ability that gets less good the more players there are since at 1-player he ups your round draw by 100% but in 4-player he only ups it by 25%.
For solo-play I think his threat cost is quite reasonable. Though more players I´ll at least agree it is up for debate.