Very good.
We have a new text with everything MarkWords-ed, capitalized or no. We have doublechecked our assumptions, gone back to the OED, and decided that “hobbit” is not uncommon. It’s a Middle Earth word, created by Tolkien, such as any author might be free to name his characters and concepts. “Hobbit” is not counting as an uncommon word in our analyses. Now we’re ready to address “how did Tolkien do that?” We’re looking at how uncommon words contribute to the register of the work.
Let’s make a graph!