Having more than once read "The Hobbit" and "Lord of the Rings" as a child (I can still write in a variant of Tengwar I learned from the Silmarillion), I was quite pleased that Peter Jackson's epic "Lord of the Rings" trilogy was reasonably faithful to the books. He even worried over the pronunciation of the Elvish and Orcish tongues. I thought the films were great and didn't even get too terribly upset at the plot differences (hey, condensing those books into three movies was a Herculean task).
That's why I'm very disappointed that New Line appears to have removed Peter Jackson as director for "The Hobbit". In this case, it doesn't appear to be based on artistic considerations, but on monetary ones. They've sued him and he has asked to not make the film until the lawsuit is settled.