A really good ally with a high-risk, high-reward text. And allies with two Willpower for two resources are always great, even if most of them have Spirit as a home.
For its Action, it is specially good in a deck that feeds its discard pile, like Noldor, Caldara, or any deck with key cards that should not be lost, like Council of the Wise. For the passive ability, I understand it thematically, losing the game if Frodo dies - for which it's nice to have two hit points! But I don't understand the thematic excuse for his action. Is Frodo now a Necromancer, resurrecting dead allies? Is he delving into the ancient writings of Minas Tirith like Gandalf? Why can he retrieve cards from the discard pile?
Anyway, a great card that even allows you to use the Spi ally Sam Gamgee. And you can always nullify the risk by returning him to your hand after using his Action with effects like Lily Cotton - even if it doesn't allow you to use his action again.