A little sidestep into the history of popular fiction:
Does anybody know where Tolkien got the idea of hobbiton village from? Tolkien's Shire is obviously a rather idyllic image of (south-western?)Bristish countryside. So where to find that place that inspired Bilbo's & Frodo's home?
My theory: Old JRR obviously ventured into the surrounding countryside from Oxford, his home town, and found a little place at the foot of White Horse Hills. If you ever travelled the narrow roads between Swindon Motorway and White Horse you'll remember these little villages where the houses seem to appear directly out of the steep slopes of the Downs - almost like hobbit holes...