Sometimes I play lore-correct and sometimes I want to play a really strong deck and dont consider the lore. The main point for me is how to get the most fun out of this game. and yeah, i really look forward to send balin too khazad-dum to find out what happened to himself
This is also what I do. I prefer lore, but sometimes I ignore it. BTW, I play with the Treasure cards for lore reasons.
"Men of the West!
A day may come when the courage of men fails, when we forsake our friends & break all bonds of fellowship; but it is not this day.
An hour of woe, shattered shields, when the Age of Men comes crashing down; but it is not this day. This day we fight!"
Bottom line, there are no rules so it is up to you. It could be a fun challenge to create a lore appropriate deck (I've kind of done it with dwarves and Rohirrim), but most people just like to win.
Play it your way!
'Eavesdropping, sir? I don't follow you, begging your pardon. There ain't no eaves at Bag End,that's a fact!'