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New theory dropped: elfs are Chinese!
Or elves, though that doesn't explain how they came from the West. Maybe from an America centric view? Or the Chinese are the Avari, that could be it. In which case, dwarves in their mountains might be Tibetans? Kazakhs? "The bridge of Kazakh-Dûm" sounds about right, somewhere around the Hall of Kazakh-Stan. I think I'm on to something! Now then, since we know Ngauruhoe is Orodruin, that would make New Zealand to be Mordor, and I guess Gondor must be Australia.
Now, the Avari are the 'dark' elves, who haven't seen the light of the two trees. Is that why they make toys for Santa, to be hung on Christmas trees, to remember that connection they never had? Yes! It fits!
Eärendil, the red-nosed mariner,
Had a shiny Silmaril...