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"Seizing the sword" is part of the archetypal Hero's Journey and is the moment in the journey when the hero has a moment of clarity or sees through a deception. In The Hobbit, Bilbo's experiences a true moment of clarity when he decides to aid the elven king by giving him the Arkenstone for negotiations against Thorin. Now, Bilbo is not facing deception in this moment, but he does risk incurring the wrath of Thorin upon discovery. Bilbo's moment of clarity comes with his realization that he must act according to his beliefs, even though such actions may cause him difficulty later. Thorin is outraged by Bilbo's decision and publicly berates him for being a traitor, but Gandalf reassures Bilbo that he made the right decision.
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