In the interest of preserving the sanity of our readers, here is a handy guide to the issues raised in this thread:
Q: What was the original question?
A: Did JRRT encourage new ME stories.
Q: And the answer?
A: Well, the evidence presented seems to be that, while he did not explicitly encourage such stories, neither he nor the Estate are actively discouraging people from writing such stories (commonly known as fan fic) for their own amusement and publishing them on a non-commercial basis for the amusement of others.
Q: So what’s the rest of the thread about?
A: There would appear to be an underlying feeling that, were a sufficiently talented writer to come along and wish to add to the body of Tolkien’s published works on Middle-earth by publishing their own work based on it, this should be permitted.
Q: And the answer?
A: Well, it’s a matter of personal opinion as to whether it should be permitted. But, in practical terms, it’s up to the Estate - at least for the next 40 years or so, while the original works remain subject to copyright.
Q: Are the Estate likely to sanction such a work.
A: Unlikely, but not beyond the bounds of possibility.
Q: What about when copyright runs out.
A: Who knows? It’s far too distant in the future to be able to make any reasonable assessment.
Q: If such a work were produced, either with the approval of the Estate, or after copyright runs out, would it be canonical?
A: Don’t ask. Therein lies madness.
Q: So, if people can produce fan-fic at the moment and the prospect of any commercially published and officially sanctioned work is currently a matter for the Estate, what’s all the argument about?
A: Search me.
Q: What’s all this discussion about whether Tolkien’s Middle-earth works constitute a mythology?
A: I’m not certain, but I think that those who consider that Tolkien intended his work to constitute a mythology are asserting that this indicates an encouragement to those who might wish to add to it.
Q: And the answer?
A: There doesn’t seem to be a definitive answer, but it’s irrelevant to the current situation anyway, given the practical and legal position, as noted above. There is an interesting residual question over how Tolkien’s works might come to be regarded in the future, which may be of interest to some, but this is certainly something on which no definitive conclusion may be reached.
Q: Anything else worth noting?
A: No, not really apart from a lot of unnecessary assertions and counter-assertions, much bluster, a modicum of personal prejudice and not a little showing off.
Q: Aren't you showing off by posting this?
A: Probably, yes.