This is a wonderful tale of healaing and remembrance.  It seems fitting that the crafting of the Lay of Lethian would be what finally releases poor Daeron from his own bondage of grief.

This is the best story about Luthien's story, and its significance to those who lived on, that I've ever read!

Loved how you brought the different strands of Tolkien together: the high epic of Luthien and Doriath with the wandering, merry Elves, honey and bread, Tom Bombadil and Goldberry of Lord of the Rings & the Hobbit.

And Daeron! What little we knew of him always seemed rather an unfortunate mix: lovely to think of an ancient bard of Doriath, singing for millenia, inventing runes, but also less appealing as (to use a completely chronologically inappropriate label) the off-putting "nice guy" who'se version of loving Luthien involves a) completely ignoring her agency and b) ignoring the fate of everyone else in the guise of mourning her.

By making him a bit of a mad, sad genius--whom Erestor and Melinna and Tom treat with sympathy for his limits--and creating an explanation for how he comes to be the author of the great lay, you give him an appeal he never had before!