Hoom now, if Hobbits were real there would surely be ethnographic studies of them. ;)

Well, since from my point of view the Balrogs are Maiar, they could surely be at least temporarily unhoused by water; I think they could take form again though, unless they reached a point like Sauron where they'd drained to much of their native power to be able to.

Sounds like something Luna would do, probably without batting an eye. =P