If you have a toddler you are pretty much legally obligated to dress them up like an Ewok. Don't think, just do it.
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!
Bilbo enjoys the quiet life, his pipe, his acorn cufflinks, and ADVENTURE!
Shhhhh, just hold him tightly.