It HAS been frustrating, but think about it, when The Hobbit is finally released, there will be a whole new generation who can then get interested in LOTR! Peter can sell more LOTR DVD sets without also having to spend the money making the movies!
I'll hold out for the "Complete Collection" that will include the Extended Versions of The Hobbit and LOTR. Then I can watch them with the grandkids we don't even have yet! ;o)