[Peter Knutsen]

Much of the MERP material published by Iron Crown Enterprices dealt with eras earlier than the LOTR events. Mid third age, or often 2nd age or perhaps even 1st age. And I'm sure there were some pre-Sun supplements too.

Part of the reason may have been that there were more wiggle room then, wthout the PCs getting crowded out by Gandalf and so forth. But I'm sure another reason was that the MERP/Rolemaster system's magic system was extremely ill suited to Middle-earth, but that this ill fit was less evident in earlier ages and so easier to conceal.

Something like GURPS' Ritual Path Magic system could work well (although a different Path set would be better, I think). I know William Stoddard ran a BESM 2nd Edition campaign set after Sauron got the One Ring back (i.e. late third age altenate history), but that involved building one or probably several magic systems out of BESM's building blocks.

One could do the same with the build system in GURPS Powers, making generous use of Enhancements such as Low Signature and No Signature (but less generously than if one strives for a Third Age feel), and of course much "skillful lore" can be represended with levels of Aspected High TL, e.g. for medicine or metallurgy/smithing rather than with actual Powers. In fact the whole actively and visibly casting of spells thing from D&D should be much reduced, but not removed entirely, and (one of my pet peeves) it should be non-trivial to determine whether an item is magical or not, to achieve a proper world ambience.