In the end, there’s no real “the one true way” to name a character, and it depends on the nature of your story. Tolkien was creating his own world, he could name as he saw fit for that world. Mine, trying to hold some semblance of realism, well, need to generally be something you’d likely find in the phone directory (you know, those old collections of sheets of paper used to level furniture and monitor stands). For me, I lean on random names/trait pickers as my mind doesn’t do well when facing a blank page, and to avoid ending up with a thousand clones of the same character with very similar names. As most of my characters won’t make it to the actual page, I’m generally not fretting over whether his/her name rhymes with another’s. (For MCs and other important characters, I will generally fill out their family trees a bit, to get a feel, ie, siblings, cousins, etc.)