They're about child height but I don't think you could mistake them for children. They are fond of drinking and parties and food, quite peaceful people.
I'm not sure about the dragons. I guess it depends on what age we land in because they might be all extinct. If you don't mind the company, I'll tag along with you to visit Mirkwood. Although, yet again, might depend on what age we land in - it might not be called Mirkwood anymore. That place has had so many name changes in the course of Middle Earth's history.