A couple of rare instances in print (one 19th-century source quoting one 16th-century source) do not show that it was in anything like common usage. (It could have been a regional term, for one example.)In any case, The Denham Tracts evidence that the word "hobbit" was already part of the English language.
I think it's entirely possible, and so do many professional linguistics experts.Whether Tolkien read the Tracts or came across the word "hobbit" elsewhere, it is unlikely Tolkien coincidentally and independently invent the word.
I think it's also possible that he may have read or skimmed the Denham source at some point, remembered the word subconsciously, and later convinced himself that he invented it. But he wouldn't think that if it was in common usage. As for coming across it elsewhere, no other printed instances have been found, so it's hard to say where that would be.
In the Tract, it's just a name for some undescribed supernatural creature. There is no reason to think it means "peaceful agrarian countryfolk about half the size of humans."Especially, his hobbit means the same thing as the hobbit in the Tracts. It is the same word.
I've actually never seen a DEX fighter in play who was an archer. The crowd I run with favors the "sword dancer" type more.Maybe it was the crowd I ran with back before the pandemic, but I've never seen a Dex fighter in play that wasn't primarily an archer