I'd suggest avoiding transliteration, as the author/'original translator' also avoided. (If anything, it would be a transliteration of 'Kuduk':

http://tolkiengateway.net/wiki/Kuduk) 

Maybe instead of *{Ha'bIt}, use a corruption of {QemjIq DabwI'} or {QemjIq renwI'} or {QemjIq chenmoHwI'} ? 

Nope. Tolkien's own "Guide to the Names in The Lord of the Rings" says

Hobbit. Do not translate, since the name is supposed no longer to have had a recognized meaning in the Shire, and not to have been derived from the Common Speech (= English, or the language of translation).

-- 
SuStel
http://trimboli.name