Shhhhh, just hold him tightly.
If you have a toddler you are pretty much legally obligated to dress them up like an Ewok. Don't think, just do it.
Bilbo enjoys the quiet life, his pipe, his acorn cufflinks, and ADVENTURE!
I know it's a little early to talk about the holidays but how cool would it be to have an Up! themed tree? You could tie balloons all over it and have a little house at the base!