[Sarumian]

I tend to agree with many things mentioned here, but think when Tolkien was writing The Hobbit he probably hadn't formed his idea of Gandalf-Olorin, or it could have been a bit different. We just need to compare Gandalf's encounter with wolfs in The Hobbit with the battle he gave them in LOTR near Garadhras (Journey In The Dark). The situations were quite alike, save for the fact that in LOTR Gandalf new for sure what the Ring was. But that must not have changed things much: if Gandalf had died in The Hobbit, he would also have failed fulfilling his quest.

I believe Tolkien allowed such difference not by mistake, but for a good reason. While the LOTR is "based" on the account of Frodo and other members of the Fellowship, the Hobbit is written "according to" Bilbo's notes. Gandalf could have told Bilbo that he had been afraid or the latter just assumed it as he'd been in panic himself. I would argue that Bilbo had had a limited knowledge of Gandalf's might till the time of the Council of Erlond, and he was also slightly ironic in regard of the Grey Wizard, playing a part of a well-intended hobbit. Would you agree?