[Frodo shakes his eyes, though something in him falls at the mention of Gandalf. He doesn't have the heart to tell Thorin that he watched Gandalf fall to the Balrog not long ago]

I have only seen Men, a fair number of elves, and a few other hobbits. But no dwarves.

[Frodo had taken a step back instinctively before he stopped himself. Thorin was much more intense than he imagined originally. He supposes that Bilbo never could quite do him justice.]

Bilbo actually killed an orc? Then it seems you have been brought from out of both frying pan and the fire, and into a strange respite.