It was an act of love for the story and the characters, and an ultimate salute to J.R.R. Tolkien.
You don't just run across that sort of passion in the film industry, unless it involves underaged boys.
That being said, I think now that the Hobbit will be about as good as the last two (or the third) Potter films.
I mean, what the heck did they do with Dumbledore's character? The guy's become a raving old loon. I miss Richard Harrison in the role. He brought a level of dignity and "gravitas" to the character. The director in the third film wasn't so interested in setting the proper mood for the film as displaying his morbid fascination for a murderous "whomping willow" that slaughtered random birds as they flew by.
Neither of the last two Potter films conveyed the atmosphere, care or craftsmanship that the first two films brought to the screen. They were cheap immitations. "Wannabes" that failed, although they still were able to deliver a tattered summary of the actual story. That's enough to carry it among die hard fans (me included.)
So really, losing Jackson for "The Hobbit" really is a cutting blow. Too bad, but we can always treasure his work on LOTR. That will always be an eternal masterpiece of directing and secure his place in film history.
"I mean, what the heck did they do with Dumbledore's character? "
Don't even get me started. The movies have completely failed to capture the true spirit of the books, the quirky behavior and droll humor of the character of Dumbledore is gone, replaced by a stern, seemingly always angry autoritarian, whereas the actual character in the books is kind (almost too kind), soft spoken, rarely raises his voice, and almost drifts through the books in a befuddled, child-like innocence (hiding the true nature of the man). That character is Rowlings greatest creation, not Harry or the kids. Dumbledore is well written in the books, Richard Harris as Dumbledore was fantastic, the new guy is horrible.
I give them credit for making the movies, the Goblet Of Fire was an enormous book, and they manages to retain enough story to make sense, but it's too dark -even at her darkest, Rowlings still manages to have FUN. The movies are simply getting ponderous.