People have been cheering for the Anti-hero and the Underdog for a long time; heck, the American Revolutionary War could be considered a tale of "Anti-heroes" from one perspective - a bunch of smugglers, rebels against proper authority, and cutthroats banding together to oust an empire stronger than they?
However, there is still a place for the iconic hero, which is what the above describes. These ideals should exist as a goal, rather than a mark to be hit regularly. Being a hero is a journey, not a state of being or a destination, and while you may approach it, very few to none can realistically hit the mark all the time. Heck, Frodo really doesn't, it's dumb luck or divine providence that really saves Middle Earth in the end. But he had a lot of these qualities.