Oh I just gotta chime in on this one. This is just an awesome dialogue going on here.
First: How are people dual wielding guns? You need two hands to reload one.
Second: Tolkien is boring as paint drying so I don't buy into the "traditional" version of fantasy world, after all we use the word fantasy so why tie yourself down to one idea?
Lastly: Touch AC might not be super logical but it has never broken my games. If you can hit the dragon every time good for you, he's still a dragon or a T-Rex, or a Balor, etc, etc. You have fun when you piss off the Big bad giant monster who now needs to deal with the biggest threat first and using the most violence he can muster.