[The Squatter of Amon Rûdh]

Leod. Father of Eorl. name formed by initials of other clue words as indicated by at first.

Quite so

Part of me wants setter to be Badger or Squatter himself as setter of the clue.

Both reasonable. It's probably worth seeing where they go.

There's Harrowdale but that worked less well than the other options

There are more options that you're not considering, but that's also a good direction to try.

perhaps a river can be a setter?

Not to me. I like the typesetting, though.

Edit: I'm not at all happy with my definition for 9, but don't want to edit the puzzle this close to the end. I'll change it if nobody gets it over the weekend.

1. CIRION - Just over a century before rise of moody cinema, this character was known to be good
2. AGLAROND - Silver youth admits little Tolkien to dwarf tourist attraction
3. LEOD Ancestor lost everything on doubles at first
4. EOMER - King was simply nothing when confused
5. NORTH UNDEEP - River's southern profundity? Quite the reverse!
6. ALDOR - Provincial dormer through which one might glimpse the king
7. RIDDERMARK - Wear on saddle perhaps swallows large sum in equestrian parts.
8. D Captain has man downstairs in a flap.
9. H Setter doubly English about tree behind falling note in place for a good hiding
10. ORALD Ash or alder holding genius by another name.
11. NORTH-SOUTH ROAD Route descending from one point to another.