There is one major drawback to the way you just described drigel and that would be time. I can't imagine showing the last alliance winning the day and then Sauron coming forth, the fight to the death and Isildur finally cutting off the ring. That would have taken at least 10 to 15 minutes to do. Plus you would alienate a huge audience with such a large battle at the beginning. I think it was well done in that it showed how powerful Sauron was/is and that without his ring his power is lessened. That is the main point we need from this and it was well done for the time allotted.
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“I wish it need not have happened in my time," said Frodo.
"So do I," said Gandalf, "and so do all who live to see such times. But that is not for them to decide. All we have to decide is what to do with the time that is given us.”
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