I was pleased to discover that Hobbitus Ille: The Latin Hobbit is scheduled for publication in September of 2012 by HarperCollins. So far there is incredibly little information available on the book beyond the title, except that the author is Mark Walker (author of Latin for Everyday Life and other books on Latin) and that HarperCollins was able to confirm that this is a real and active project in the works.
Is this a translation? That is my guess. I will share more as additional details emerge!