That whole 'fairytale' aspect is why I think Tim Burton might make a splendid film!
Got to say that what was wrong with the LotR films was the scriptwriting, messing about with the delicate balance of the storyline, so I'm quite pleased that the old team won't be let loose on The Hobbit. It has far more potential for silliness and after what they did with poor old Gimli I was a bit worried the film might come out like Bilbo Baggins and the Seven Dwarves.