sold out to the suits at Warner Brothers
That's not going to turn out well for them. After the first steaming pile, the subsequent two aren't even on my list. Even if the next two were great, what were we going to do, show our kids only the last half of the story (well, with other random crap thrown in)? It's not like they were going to go back and fix the first one.
Once the copyright fully expires, somebody will make a great TV miniseries of The Hobbit. The folks doing Pratchet's stories would do a good job, for instance.
Oh, and Jackson has blown his cred with everybody. Hope the contract with WB was airtight on this trilogy because that payment's gonna have to last for quite a while.