Have you ever "regretted" the anything that happened in the universe of LotR? Have you ever fantascized about anything that would go different? Imagined an alternate course of events?
I did my share of this. And my greatest fantasy is Smaug becoming the overlord of Lake-Town. He is an intelligent, powerful and wise being, and when Bilbo meets him, through long, exhausting conversation he manages to persuade him to... share his gold with the people of Lake-Town, in an exchange of lordship, rule, being worshipped. What could tickle great dragon's pride stronger than tons of gold? Massive following. It's a long, tough road with a lot of giant bumps, but Lake-Town grows ever stronger under Smaug's rule, becoming one of the most powerful factions of Middle-earth. Bilbo settles there as the High Advisor of Smaug. The terrotories spreads, it grows from a trading town into a fully functional "nation", its now known as a Dragonlands, people of this nation use dragon symbolic on their banners, armor, the dragon influence can be seen in their culture. You catch my drift?