Do not despair, the future could always potentially bring change! Perhaps you could use an Iron Hills movie-based design for a scout hero to replace old Bilbo! Just keep pumping out ideas 
Just research a bit more before you wrote something like that,
Link .
I meant there is already nice idea, what do you think about it? Also I won't like to see Iron Hills model in Erebor faction.
Back to the Old Bilbo issue;
I think he might be used for Imladris this way: you get him from the Hobbit farm (or somewhere else) he is the usual Bilbo. However, he "studies" all the scripts and books of Imladris, so he will be able (maybe make him able to enter library) to provide some spellbook recharge bonus, or a passive exp multiplier for nearby/all heroes.
Basically something related to him, after he finally settled in Imladris, studying all the knowledge and history that is stored there.
Agree, I think we should somehow use old Bilbo for Imladris, ofc if team decide to remove this scout from Erebor faction. I personally like idea of Bilbo in Imladris, but we will need good suggestion for new scout here.
Also I must point to problem of current scout hero of Iron Hills, as I have pointed above to Odysseus's previous comment, here is current suggestion for Narin,
Link.
I point on this simply because team have done new Outpost and current scout hero has same lore reasons for removing it from Iron Hills as Lake Town's expansion did.
