Indeed, it's because of solo Bilbo that his restrictions are so harsh. His greatest assets are
Consorting With Wizards and
Red Book of Westmarch, though
Practically Everyone Was Invited is much more useful when you can start Bilbo than when you have to draw him. 2 twilight is a lot to spend on some utility though, so I don't know anyone who uses him in the Fellowship instead of as Ring-bearer. I guess he could be fodder for a
Great Elf Warrior deck?
The solo RB decks are some of the most fun to play and play against in my opinion, since they require both players to plan their moves more carefully. Certainly worth a few plays to see if it's something you enjoy as well. I think the most OP version of Bilbo uses
Red Book of Westmarch and
A Light in his Mind: play a tale to lose initiative and draw a card, gaining initiative... From the FP side it's not altogether better than simply packing 4 copies of
Well-spoken Gentlehobbit, but you can use the extra deckspace and consistency in cycling to set up shadow hands and go for a kill early. You'll be able to peel burdens about as fast as you add them, so you can choke up your opponent's hand and generally make each of 4, 5, and 6 perilous sites for your opponent.