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gazery wrote: However, you said that this episode was going to be a Hobbit's retelling of the event. So those high-school bullies, who ran away at the first sign of trouble, May be described as a hoard of orcs or worse.

You could let little slips through that the story is not wholly true - like when the orc started crying!

Very good points!

A flying idea, but... What if the Eye of Sauron would be renamed to Tale Time and, when reaching the Hunt Threshold, it's the player's time to narrate what follows up using the Hobbit's Tales cards and all their hobbitish imagination.

An optional way of usind the cards would be for each player to take two cards and, beginning with the character who triggered the Tale Time, each one chooses one card from their hand to explain a part of the story. You, as LM, take a number of Hazard cards (equal to the number of players?) and play them if possible.
After the last player ends the story, you resume the Adventure phase.