Duke aims a thin, rusty smile perhaps just a little above where Thorin's head actually is. He's confused by the depth of the voice and where it seems to be coming from, so he keeps thinking that Thorin is taller than he is. But thank you for not telling him 'but you should want more friends' or something of the like.

"It ought to be. It sounds like it is." The secondary problem of not having many friends is that Duke has no idea how to make simple conversation.

"... Other than the obvious problems of arriving and possible problems with company, how have you found the castle?" ... He's trying for something to talk about, okay.