Hobbits are shorter than humans, by about two-three feet. They also have some curious practices that set them apart from humans. But contrary to modern opinion, they are not non-human, they are an ethnicity or subcategory of humans.
The name “hobbit” came from the hobbits’ ancestor Hodren Bitt. If you take out the “dren” from Hodren and add the “Bitt” you get hobitt, which changed to hobbit.
Hodren Bitt was the father of the hobbits. He lived during the first space age. He was, as we would call him here on earth, an astronaut. Hodren and his wife colonized the twin planet, Doihandi, at the beginning of the first space age.
Hodren’s descendants, the hobbits, continued to live on Doihandi and multiply. As time went on, the first space age ended and the dark age began, leaving the hobbits isolated from the rest of the human race on Emandrais. Many years passed before one of the hobbits again found a way to travel through space. Thus began the second space age, when the hobbits were once again united with their kindred on Emandrais.
When the hobbits landed on Emandrais, it did not take long for hobbits to realize that they were shorter than the natives.
The hobbits are an example of what can happen when you have a small gene pool isolated from other gene pools for a long period of time. Hodren and his wife Belsa were both rather short. So the genes they passed on to their children limited their height. Since the hobbits were isolated from all other gene pools for so long, the hobbits grew shorter than they might have, had they been able to intermarry with others possessing taller genes. Thus, over time, the hobbits became much shorter than other humans.
That’s where the hobbits came from. They are not another type of being with a soul, they are simply short humans.