Wherein Morgoth spreads the misery though puppetry. Releasing Húrin to the world after years of captivity, he aims to increase strife among Men and Elves. His reception is varied, with his own people shunning him as in league with Morgoth. Even the Eagles state that "Húrin Thalion has surrendered to the will of Morgoth." This reception makes me think of Gandalf speaking of how to treat Gollum, and the importance of mercy. I wonder how this story would have changed if people had shown him kindness and acceptance, while acknowledging that Morgoth had his plans for Húrin still. But again, that is often the beauty of the "curses" Tolkien lays against his characters, their fated doom often not of divine or infernal end, but the result of deliberate action and self-fulfilling prophesy.
We some of what could have been, when Melian speaks kindness in face of his twisted perceptions and grief, but it leaves Húrin bereft of purpose and so he passes away. It also happens to late, for a great treasure of the Dwarves is still given unto Thingol, who has the Dwarves set within it the Silmaril. As we have seen so far, nothing involving the Silmarils goes well, with all those who see it desiring to possess it. Those that wished it laid claim, and Thingol responded in anger, provoking the Dwarves to rise against him. Pursuit was given, but two escaped back to their people and reported that they were unfairly slain by order of the Elvenking.
Melian's power was withdrawn from the full realm, which allowed the Dwarves to move forward unheeded until they met the Elven host. They win their way in and take for themselves the Silmaril they coveted, among other plunder. They meet on their leaving Beren, his son Dior, and many Green Elves, and those that fled met the Ents, who we know from The Lord of the Rings can be quite viscous when provoked. The Silmaril is reclaimed and given to Lúthien, Thingol's daughter, and her son, Dior, takes on the mantel of King of Doriath where he rules until the Necklace of the Dwarves with the Silmaril set within is passed onto him upon his parents death. While Lúthien was unassailable, her son had no such protection, and Celegorm and Curufin again raise strife, assaulting Doriath and Dior, losing their own lives, ending those of Dior, Dior's wife, and his sons, and destroying Doriath.
The Sons of Fëanor and their followers fail to claim the Silmaril, secreted away by Dior's daughter and a few survivors of Doriath.
I am not sorry to see the end of Celegorm and Curufin, who again and again have acted as villains in self-interest and in following an oath made to regain the Silmarils. As for the Silmarils, there is not so much a curse upon them as a depressing reminder of the power of avarice and greed, and that seems in line with the type of message and story Tolkien tells again and again in this saga.