The true moment of greatness of Bilbo, the true climax of The Hobbit, is summed up in his actions regarding the Arkenstone. The central tale of The Hobbit is not the confrontation with Smaug, but the journey and the friendship of Thorin and Bilbo. Bilbo betrays his friends, not out of spite, but in order to save them as well as to avert the suffering of all in either a protracted siege or battle. It is akin to the lesser deception of Frodo’s friends in ‘A Conspiracy Unmasked,’ which though dishonest has the best interests of all at its heart.