It would have been vastly better had they just stuck to the plot of The Hobbit.
The 'stuff from the appendices'/LotR-reference sections did not fit the film in any way - they killed the pacing, screwed with the tone, and heavily detracted from Bilbo's story. Which is a shame, since the bits featuring Bilbo or the dwarves were actually quite entertaining.
Also, I strongly disliked how the film had about six intros.
Peter Jackson clearly couldn't decide whether to start with a historical battle, a flashback, a flashforward, a link to Lord of the Rings, or the actual start of the book...so he just went with 'all of the above'. It was sloppy as hell, and made the film simply drag on (ha!) and on for the first half-hour.
Anyway, I got to the end of it thinking that they could have easily cut the worst hour out of the film without losing anything from the central story, then slapped an hour on the end, finishing the entire book in one film.
*edit* Come to think of it, I probably enjoyed the film more than I did the LotR films. But the bits that tried to remind me of the LotR films were by far the worst bits.
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