I think that’s a Thiel thing. Tolkein was was one of his obsessions growing up. It doesn’t surprise me that he saw a plot device intended to be a warning as a really cool idea…

As I understand it, the head of Dreamworks at the time used to work at Disney, but had a falling out with the animation chief there and based the entire Farquaad character, and name, on him. Professional level pettiness.