Martin Freeman turned down Bilbo Baggins in The Hobbit

Apparently he's taken the part. According to my sources.

As much as I liked the Office - and Martin's character in The Office - I don't like Martin Freeman. He seems to take himself much too seriously, and comes across as though he thinks he's a better actor than he actually is. What was that shit where he ran a hardware store? Dire.

Though his face is a bit deformed, so he would look the part as a hobbit.

I read that as Morgan Freeman

For me, as well as being Tim, he's Arthur Dent (even though Hugh Laurie always should have been). You can't be Arthur Dent AND Bilbo Baggins.
That's Ludichris.