This is always my argument with "fangames", which frequently get nuked by the copyright/trademark owner. Like, you put years of effort into making a game from scratch, the code is all original, the design is new, why ruin all that by putting in Mega Man or whatever?
LOTR is great because it's a unique product of who Tolkien was, with his background in linguistics and experience in World War I and his Beowulf scholarship. Be your own interesting person and make your own stuff.
Fun. Because it's fun. Because we, as humans, generally like to tell stories, especially about shared culture. Making a tribute of an artifact is another way to appreciate it. It's another take, an amateur singer sharing a moment with their friends, singing a song from fiddler on the roof. I myself love recreating props from movies and games. It connects me to the author and other fans. I appreciate small details of its construction more. I perceive the steps the original craftsperson took. I understand, through a small window, the monumental effort it took to create the original greater creative work. I'm not saying not to create something new. Simply that it's fulfilling to some of us to experience our shared culture by contributing our own point of view.
A new thing is great, not saying it isn't. Certainly, tributes of recent works are not a good commercial strategy. I personally haven't truly appreciated a great work like lotr or Chrono Trigger or Jurassic Park or what have you until I've recreated a small part of it out of love. Of course, this rant is limited to fan derivatives made out of passion. Attempts to deceive are another thing.
I'm sorry if I'm rambling and come off as angry, I'm not and appreciate your point. But I find this suggestion to leave out the tribute part in fan works to kinda be missing the point. For my stuff I'd rather have made it and have it taken down, over not having made it at all.
I never understood why people put so much effort into fangames, fanfiction, etc. I mean - great, they're inspired! No copyright infringement there. Share it with the world.
I feel like these days, real creativity is punished, and only 'meme'-able things get rewarded.
This is where free expression and intellectual property butt heads. Had our subject merely distributed his writings openly (free), it would be much harder to shut him down.
LoTR itself drew heavily on existing culture, to the point that some at least hinted that Tolkien had plagiarised. Good cultural works don't happen in a vacuum, they build on what came before.
LOTR is great because it's a unique product of who Tolkien was, with his background in linguistics and experience in World War I and his Beowulf scholarship. Be your own interesting person and make your own stuff.