Smials are practical?
 

A man named Simon Dale has actually built a Tolkien-style hobbit-hole to live in with his family.

See http://www.simondale.net/house/ and http://www.dailymail.co.uk/news/arti...ust-3-000.html .

Well actually this smial is not dug into the ground but is built up from inexpensive material with a layer of earth laid over it.

There have been many successful attempts at Hobbit holes. Some are opulent, and others, like the one in Wales, was cost-conscious. There's even a Hobbit motel:

http://webecoist.momtastic.com/2010/...ped-dwellings/

http://www.finehomebuilding.com/how-...bit-house.aspx

By all accounts, building a home inside a hill is eco-friendly and friendlier still on energy bills. Of course, there is the question of digging up once-pristine hills, but that's another thing altogether. :D

I like the idea myself. Aside from the Tolkien connotation and energy efficiency, there's an added bonus of protection from severe thunderstorms and tornadoes. If anyone wants to donate a few hundred thousand silver pennies to my smial-fund, contributions are most welcome. ;)

As long as you had good drainage and ventilation, it would be pretty much okay.
A lot of old-timey root cellars were just holes cut into hillsides and lined with bricks or boards.

Plus there's the added advantage of being able to suddenly jump out and scare the crap out of passers-by.

:D

More hobbit-holes:

http://forum.barrowdowns.com/showthread.php?t=17910

Cool stuff, though I'm not cool with living a hole in the ground, even though it's not an ordinary hole, dry with worms in it. ;)