"Phil, Fran and I read the thing on the net and spent most of this morning talking about The Hobbit. We think the two film idea is really smart. One of the problems with The Hobbit is that it is a fairly simple kids story, and doesn't really feel like The Lord of the Rings. Tonally I mean. It's always may be a little worried, but with two films that kinda gets easier. It allows for more complexity. At that implied stuff with Gandalf and the White Council and the return of Sauron could be fully explored. That's what we talked about this morning. Taking The Hobbit and combining it with all that intigue about Sauron's rise, and the problems that has for Gandalf. It could be cool. That way, it starts feeling more like The Lord of the Rings and less like this kids book. You could even get into Gollum's sneaking into Mordor and Aragorn protecting The Shire. That's what we'd do. Love to work with Viggo again."
As long as they don't "modernize" it.
Real interesting! I like it.