I always thought Merry and Pippin as names were far superior than Frodo and Bilbo, which sound dopey. Merry and Pippin may sound like bunny names (I love that!), but at least they're nicknames of perfectly sound real names, the sort of nicknames one tends to get stuck with. I know a grown woman, a psychologist, who still goes by the name Bunnie, speaking of bunnies. Frodo and Bilbo always sounded made up to me. What's wrong with names like Sam?
Also speaking of bunnies, in Richard Adams' Watership Down, the male rabbits mostly have names of plants or other objects (Hazel, Woundwort, Holly, Dandelion, Strawberry, even a Pippin), while the female rabbits mostly have names that are phrases in the rabbit language, like Thethuthinnang and Hyzenthlay. Since there are relatively few female characters the long names work and seem very feminine to me. But then that book is my "desert island" book, along with Meghan Whalen Turner's The Thief.
I do make up names for my characters sometimes, but I try and make them sound realistic and not too out of the ordinary. So I don't know why I bother, really.