Was Hobbit perfect? No, of course not. However, it could have been much, much worse. I'll point you to the epic ruination of Starship Troopers or the somewhat lesser mangling of Ender's Game or the utter crap fest of Battlefield Earth (strip out the thinly disguised Scientology elements and you still have the bones of a good story). These are books I grew up with and I felt real excitement knowing they would finally be movies... Then I saw the movies...
For all the purists that think every line of dialog should be preserved to properly honor J.R.R. I'd like to mention Dune. I've worn out copies of this book. I've got just about every version available of the David Lynch movie. However, I said for a long time that I wish that movie had more from the book and was more faithful. Then I got the Dune mini-series on SciFi channel. It was chock full of hours and hours of dialog. You know what? I can't stand it, it's just boring. Books and movies are different media and just blindly spamming straight from the book does not make an engaging movie.
Had Peter Jackson made the LOTR movie purists wanted, it would have flopped and you wouldn't have gotten The Hobbit at all. Had he made the first Hobbit movie the way purists wanted, we might not have gotten the end of the story (see Battlefield Earth, it's abysmal failure doomed the second movie intended to actually finish the story).
Hey, if you don't like the movies, that's fine. Everyone gets an opinion. However, given the Hollywood track record with adaptations of Sci-Fi/Fantasy, and the need for them to make movies with as broad of an appeal as possible, I think that we actually got far better than we could have expected...