I have interpreted it less as “the hobbits are less powerful”, and more as “what would a powerful hobbit even want?”.
If a hobbit had all the power in Middle Earth, they would have an amazingly cozy hobbit hole with the best food and their parties and garden would be the envy of every hobbit and probably some elves and men. Hobbits don’t really have much interest in conquest, and their definition of dominance includes being well-liked or admired by those they dominate.
I have interpreted it less as “the hobbits are less powerful”, and more as “what would a powerful hobbit even want?”.
If a hobbit had all the power in Middle Earth, they would have an amazingly cozy hobbit hole with the best food and their parties and garden would be the envy of every hobbit and probably some elves and men. Hobbits don’t really have much interest in conquest, and their definition of dominance includes being well-liked or admired by those they dominate.