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No, I'm pretty sure that Bilbo got that during the adventure. Maybe you mean Frodo?
2E planescape, migrated to 3.0 FRCS, into 4E core. Gotta appeal to edgelords. Not sure if them, Drow or Kender are the biggest problem races as they tend to appeal to special types of players.
Mebbe add Draenei from WoW to that list. I know they don't share that demonic heritage, but they are aesthetically similar I think. Also I imagine they are a big reason many people assume/decide tieflings have hooves.
2e Planescape saw the 1st and final edition where I liked tieflings. They were ruined after that for me. I've also seen very few of them played compared to all of the other races. Tieflings, gnomes and Dragonborn are the bottom three races in the groups that I've played in and run.
I have to agree, I've seen far more tieflings in CRPGs than in PnP games. Actually, I have seen zero tiefling (or dragonborn) player characters in PnP games. I have seen the odd gnome though.