If one was interested in a major hack, I think you’ve identified good starting points. I might begin by decoupling Traits from the pass/fail mechanic, and making them Hope-engines instead.

I get the impression that the Introduction step is a nod to the source material. Whenever new people meet each other in Tolkien, the first thing they do is brag about their names and their exploits, from whence they have come and to whither they go. I think the text is missing a few explicit “roleplay here” flags, as part of the ongoing bugginess in the core book that you’ve previously-noted, assuming “everybody knows how to play a roleplaying game.” So, I might restructure it this way:

1. You encounter someone new and you want something from them! What is it?
2. Roleplay sizing each other up. Roll Insight, and the Loremaster will narrate some details about the other party that you can determine. Get your bonus dice and set them aside for now.
3. Introduce yourself! Are you bombasic, sly, direct? Do you all introduce yourselves, or do you have a spokesperson?
4. Based on your choice in the introduction roleplaying, roll Awe, Courtesy, or Riddle. This does whatever it does.
5. Roleplay the discussion. Every time you make a salient point, roll whatever. Add bonus dice if you integrate some of the details from the sizing-up phase.

I know this isn’t in the text, but I feel like it’s meant to be?