That's something I often wonder- if its the absence of Hobbits that alienates so many readers from The Sil - even for me, I love the book, but it's not half as satisfying as reading about the adventures of Bilbo and Frodo. There's something 'like us' about them.
And maybe that's why Tolkien does manage to create non-offensive villains, as they are rooted in reality, and are essentially like us - well, perhaps the Balrog is only like me first thing in the morning, but most of the villains in human form are just like us or like people we know. Saruman is like the clever guy who just thinks he knows too much. Grima like the office sneak, the brown-noser. Gollum like the guy on the street corrupted by bad influences and addictions. Lobelia like the interfering neighbour. Denethor like the politician making the wrong choices...
Odd that. Tolkien was writing fantasy, and yet his characters are also very
everyday people. It's in the thrillers where we find the people who are not everyday folk maybe?
EDIT: and yes, you can good sir