I think he’d be please that there were movies, but unhappy with the actual movies themselves (What author could be happy when a long carefully crafted book is stripped of most of its richness to fit into a 90 minute flick?)
Tolkien stated that his purpose in writing The Hobbit and The Lord of the Rings was just to tell a tale similar to ancient epics. And they are very good stories.
He always thought that movie adaptions of his books could not be made, which is one reason he sold the film rights so cheaply.
Heres an essay gene Wolfe wrote around 2000 or so concerning Tolkien. Pretty good stuff, he actually wrote Tolkien a letter back in the day and I guess Tolkien responded.
http://www.thenightland.co.uk/MYWEB/wolfemountains.html
Freegards