I like where this is going, I think it has great potential!
I was thinking, about the units, we can easily use most of the models of the High Elves for the Noldor (even the new Eregion Smiths), and some of the FRoME Lórien and Mirkwood units for the Sindar. The same for the Dwarves, and maybe some Dale and FRoME Dunland units could be used for men. All with proper permissions, of course.
For Angband we could use Mordor orcs and trolls (as well as OotMM cavetrolls), and we already have the Balrogs. All that is left now is to create new models for dragons (it's possible, since dragons didn't fly yet at that time, but the animations will be tricky), as well as werewolves - iirc there were lots of werewolves in Morgoth's armies.
A suggestion, what do you think about making this playable for small size? That would enable us to have one-man-units possible, for dragons and balrogs, and especially for Glaurung and Morgoth and maybe other heroes. Morgoth should definitely be playable, though probably stationed in Angband, without movement points. I think there's a model for Sauron in development, so maybe that could be used for Morgoth (if we gave him the iron crown with the Silmarils, and a hammer instead of a mace).
Tokus would be the best to make some faction symbols and banners, I think - we know what the banners of all the Noldor looked like, at least, and I think Angband's banner was simply black. And maybe our good Louis Lux could also help with the 2D art, and MBA with some faction intros...
Now the most important part; did you contact gigantus about the map?