Quote: A nice big pile of gold and jewels far away from Nargothrond which Glaurung could steal and obsess about!
Wadda ya mean that's not the answer you where looking for? Jiiz! I'm sure it would have worked though.
Yes, even though that is not the answer for which I was looking, it would have worked, for a while. However, paying tribute just like paying a blackmailer is a never ending task; they always come back for more and sooner or later the coffers run dry and when you can no longer pay, they come to take their pound of flesh.
So the answer I want concerns something the Elves could have done to keep the Dragon, maybe not away from their door, but at least from entering their door.
Remember, Glaurung had no wings; he was a creepy-crawler wyrm, not a flier.