Or no Hobbits at all...

[Boromir88]

Alatar ... my statement that the Estate may not want additional films made is based on many posts here and on other sites where people of a Purist stripe keep saying the films should not have been made and do not want the others made either.~Sauron the White

They may not want movies to be made at all, but they aren't trying to block The Hobbit from being made, they are trying to block New Line from making it. Quite understandable, if New Line didn't honor the contract, you wouldn't want those figure fudgers involved in The Hobbit where they can "forget" to pay your proper due yet again.