I understand what you are saying.. but like I said, your view is skewed by your environment, and what you consider “normal”.
If a Korean or Indian film maker where doing shakespere they would use Korean or Indian actors usually.
The same way Hollywood used white men in makeup to play Indians or Asians in old movies.
I have been watching a lot of Bollywood and Korean-made films recently and it what I am trying to explain suddenly accured to me.
Transgress audience expectation and criticism and weak box office or viewership ensue. Or, hit the mark as to what an established audience wants and success usually follows.
Consider, for example, The Hunt for Red October, The Road to Perdition, Blade Runner, Game of Thrones, and The Walking Dead as productions that were highly successful in large part because they were faithful to the original work.
Maybe Bollywood could produce versions of those that would be successful in that cultural sphere, but they would all be doomed to fail commercially outside of it. And would anyone think well of woke, diversity rich versions of The Walking Dead with zombies and the survivors doing Bollywood style song and dance numbers, Game of Thrones with Italian opera stars doing arias, or The Hunt for Red October with black actors as the Russian sub officers and crew?
My surmise is that like George Lucas, Peter Jackson has had so much success that he escaped not just the movie industry's constraints of budget, studio control, and attention to audience expectations but also plain good sense. Then again, maybe the world is secretly aching for a big dose of wokeism with a Kiwi flair. We shall see soon enough if fantasy will be not just the genre but also the dominant aspect of Peter Jackson's thinking as a film maker.