> he would never have thought to give the ring to a creature as lowly as a Hobbit.
Actually, it is explicitly said (by Gandalf, in Book III, Chapter 5) that Sauron knows the Ring was borne by a hobbit. What Sauron is not clear about is why a hobbit has it or what the Fellowship's destination is. According to Gandalf, he assumes they are going to Minas Tirith, and that once there some more powerful person will take the Ring and use it. In other words, he doesn't expect a hobbit to keep the Ring, much less to be taking it to Mount Doom to be destroyed.
Actually, it is explicitly said (by Gandalf, in Book III, Chapter 5) that Sauron knows the Ring was borne by a hobbit. What Sauron is not clear about is why a hobbit has it or what the Fellowship's destination is. According to Gandalf, he assumes they are going to Minas Tirith, and that once there some more powerful person will take the Ring and use it. In other words, he doesn't expect a hobbit to keep the Ring, much less to be taking it to Mount Doom to be destroyed.